Georgia housing inventories have been quietly tightening and housing prices have been steadily rising. These two factors have combined to make it difficult for so-called “move up buyers” to transition from their first homes into bigger and better homes that suit their growing families. A renovation mortgage may be the solution for many of these buyers.
With this situation facing more buyers in the Coastal Georgia markets and elsewhere in Georgia and Florida, many are choosing to stay put. However, there are options to refinance and improve your current home, or purchase and renovate a new home simultaneously.
Two separate loans to purchase and renovate can be time consuming and expensive. Luckily, there are two programs that offer a one-time close renovation mortgage with one monthly payment and one set of closing costs.
Those two programs are the FHA 203(k) Mortgage and the Fannie Mae HomeStyle Mortgage. Let’s take a look at the two different programs:
Additionally, Capital City Home Loans offers a Jumbo Renovation Mortgage for loan amounts over $484,350.
One key item for all of these programs is that you cannot do the repairs yourself. You must use a licensed general contractor to head up the project, and the contractor must be in good standing with recent homeowner and vendor references.
These renovation mortgages provide flexibility and options in our current housing market that you might not have imagined. Call me today for more details at 912-771-2115 or Apply Online for your custom mortgage consultation and total cost analysis.