Buying a house and making it a home used to mean you had to spend your nights and weekends doing DIY work, spending your earnings or using a credit card to pay for it all. Everyone calls it sweat equity. While DIY work can be rewarding and save you on labor costs, most of us are too busy to deal with it.
Social lives, family commitments, children, work ... we lead full lives. Devoting time on our weekends or other down times can be a real drag. And paying for the materials (or labor) with credit cards or from our paychecks can be painful.
Life as a homeowner doesn't have to be so tough. Buying a home with a renovation mortgage can make it more manageable. One option for buying and fixing up a house - making it your own - is something called a HomeStyle Renovation Loan. This mortgage allows you to base the amount you finance on the after-improved value of the house. This means you're financing the remodeling right into the home loan, since you're adding value to the house.
Learn more about HomeStyle Renovation right here.
Once you've heard about HomeStyle, it's time to dig a little deeper and learn some facts about this mortgage loan option.
1) We can explain HomeStyle in under 2 minutes
Sometimes you need 30 minutes or an hour to explain something. Sometimes you can get the gist in a couple minutes.
See the embedded video here - What is HomeStyle Renovation? (in Under 2 Minutes)
2) Investors can use HomeStyle Renovation
If you're thinking about turning your cash into real estate investments, but don't have a ton of cash to work with, you could consider using HomeStyle to buy less-expensive housing stock, finance the work and still have cash for another down payment - in theory. We're not financial advisers, but we've seen this work for some real estate investors. The requirement for HomeStyle and investors is a 20% down payment.
3) HomeStyle vs FHA 203k
One of the other renovation mortgage out there - a very popular one in this world - is the FHA 203k. So, how do the 2 loans compare? Watch the short video below.
See the embedded video here - HomeStyle Renovation vs FHA 203K
4) You can buy & fix up second homes and vacation homes
Ever think about buying a lake house? So often the nicer homes on a lake are expensive. What about buying a fixer upper and financing the work right into the mortgage? You can do it with HomeStyle. At AmeriFirst you'll need a 10% down payment (based on the purchase price and the renovations combined). That's likely a better proposition than paying for the work out of pocket.
5) Pools & landscaping are not out of the question
Some renovation loans don't allow for extras like landscaping or in-ground pools. With HomeStyle, you have more leeway. You can make some serious exterior improvements with the right landscaping. Plus, a swimming pool just might make you the most popular house in the neighborhood.
You can learn even more about HomeStyle Renovation with the buyer's guide below. If you'd like to skip the guide and talk directly with a mortgage consultant, that's an option, too.