Purchasing an investment property that needs a little work? Wish you could include the costs of renovation in the loan? You can with a HomeStyle renovation loan from Signet Mortgage! Purchase that rental property that needs renovation or repair on this guest post. Improvements can be anything that adds value to the home. No longer will a purchase be held up because of the condition of the home – a renovation loan will allow repairs after closing with funds borrowed at the time of purchase. The lender simply creates a hold-back for the funds that are dispersed as the work is completed. Property must be a single-family home and the loan-to-value based on the “as completed” value is limited to 75%. The underwriting is based on slightly more conservative Fannie Mae guidelines requiring a 720 FICO score, etc. Cost of improvements can be up to 50% of the “as completed value” which provides a great deal of flexibility to buy a distressed property and turn it into a solid investment. Improve your return on investment by putting less cash into the property. Amcor Share Price will be a good place to start your investing business. This example illustrates purchasing a $400,000 property with and without a renovation loan. The ability to add the desired renovations into the value that the 75% loan is calculated on, lowers your cash investment. Clay Selland, President, Signet Mortgage Corporation 925-807-1500 x303 Clay@signetmortgage.com
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