Need for Renovation Loans Increases as Number of U.S. Movers Hits 30-Year Low
Housing inventory levels have dropped to lows not seen in decades and home prices have risen to their own record levels.
According to new reporting by The Wall Street Journal on Sunday, an increasing number U.S. homeowners are choosing to "love it" over "list it". The mobility rate for Americans is currently stuck at a 30-year low as many homeowners are opting to stay in their current home and renovate.
In September, housing starts fell 4.7% with sales of previously owned homes at a decline on an annual basis for the first time since July 2016, WSJ reports.
As home prices increase and inventory dwindles, Americans are now pouring record sums into home renovations. According to data released by Harvard University's Joint Center for Housing Studies this month, spending is expected to continue accelerating past current record highs.
For homeowners looking to improve their current residence rather than move, there are several financing options available to roll the cost of renovation into a mortgage loan keeping savings account in tact - saving them time and money.
Outlined below are a few of the renovation loans available with Fairway Independent Mortgage Corporation:
HomeStyle Renovation Loan
You can use a HomeStyle renovation loan to cover costs of repairs, remodels, renovations or energy-efficient improvements on a primary residence, a second home or an investment property. There are no required improvements or restrictions on the types of repairs allowed or a minimum dollar amount for the repairs. However, repairs or improvements must be permanently affixed to the real property, add value to the property, and be completed by a licensed contractor.
Limited 203(k) Rehabilitation Mortgage
In addition to funding your new home, an FHA Limited 203(k) can provide up to $35,000 (including a contingency reserve) in additional funds to help make a few non-structural repairs or renovations such as updating a kitchen or bathroom, adding new flooring, purchasing new appliances, or repairing the roof.
Standard 203(k) Rehabilitation Mortgage
If your potential dream home needs more than $35,000 in renovations or the repairs are structural, the Standard FHA 203(k) might be the right solution. This program removes the restrictions of the limited option to allow for major home remodeling. A Standard FHA 203(k) can provide additional funds* to help with eligible repairs including moving or removing walls, minor pool repairs, and landscaping. *Final disbursement of funds is subject to final inspection.
Apply for a Home Renovation Loan Today!
If you are interested in a renovation loan, request a consultation with a licensed Fairway Loan Officer HERE