Considering buying a home that needs some TLC? Are you concerned about the remodeling costs? Well Freddie Mac is now offering a new loan product which allows homebuyers to purchase a home and finance the remodeling costs with a single close mortgage.
According to McLean, VA June 19th 2019 (Globe Newswire) Freddie Mac announced its CHOICERenovation loan to help address the nations aging housing supply, support the need for affordable housing, and offer renovation, repair, improvement or refinance options to support the increasing demand for cost-effective financing solutions.
The CHOICERenovation mortgage is available immediately to all eligible lenders nationwide.
This is a great opportunity for buyers looking to purchase a fixer home and remodel it with their own needs, wants, and personal tastes. At RL Remodeling we offer free consultation during the buyers escrow period. Meeting with a contractor prior to obtaining the house is a great way to save time and money.
First, by knowing the exact costs to renovate the home, the buyer will know the exact funds needed to mortgage. Up until now, buyers assumed the remodel costs and either had funds ready after closing, or moved in and saved up for the particular remodel to be done down the road. In addition, knowing the remodeling time frame, makes it easier to schedule moving in and out, which usually creates stress and lots of logistical planning.
Second, buyer will be ready to begin the remodeling process right after closing. Being able to start the remodel process right after closing is a great way to save on overlapping living expenses. Remodeling prior to moving in also means that one doesn’t have to be living in the home during the remodel process. Or, if planning to remodel only after moving in, having to find temporary housing during the remodel process.
In all, we find this new tool a great way to make home buying a more affordable and pleasant process. Having an option to lend more, and knowing all the costs and expenses prior to purchase is a key to a successful home purchase.