Remodeling Loan for Fixer-Upper Buyers

The mortgage giant Freddie MAC unveiled an opportunity for current homeowners or fixer-upper buyers enabling them to roll the expense of remodeling and repairs into a single mortgage.

Remodeling Loan for Fixer-Upper Buyers

As homes age, more homeowners would like to remodel to spruce up their properties. Of the nation’s stock of 137 million units, nearly 80% are at least 20 years old, and 40% are at least 50 years old.

Freddie Mac says its new mortgage product will assist home-buyers or homeowners finance or refinance fixer-uppers. Eligible buyers are able to finance the purchase of their home and the expense of renovations into a single-close mortgage.

“Research indicates a large number of older homes need repair and renovation, either to meet the needs of current owners or as a viable option for new home buyers,” says Danny Gardner, Freddie Mac’s senior vice president of single-family affordable lending and access to credit. “The ‘ChoiceRenovation’ solution gives borrowers the opportunity to make improvements, renovations and upgrades to a home using a purchase or no cash-out refinance loan that will be eligible for sale to Freddie Mac. This provides the borrower with a convenient cost-saving option for financing renovations.”

Borrowers also can utilize the ChoiceRenovation mortgage for remodeling and repairing a house that has been damaged in a natural disaster or for renovations which can help the borrower prevent damage from a future disaster, such as storm surge barriers, foundation retrofitting, or retaining walls.

Remodeling projects have been growing.

BuildFax reported this week that markets like Los Angeles, Miami, Philadelphia, Chicago, and Washington, D.C., are seeing some of the most significant increases in remodeling activity.

Gardner says Freddie Mac is launching the new mortgage to provide more flexible financing options in giving answers to “the increasing age of existing housing stock, the growing volume of millennial and other first-time home-buyers trying to find more affordable home-buying options, and the rise in retirees opting to age in place.”

The new program should make fixer-upper loans more widely available, though an FHA-insured Section 203(k) loan is a second option that has been around for some time.

Ready to find your new home here in the Tampa Bay and Surrounding Areas? Nick, Cindy & Nicholas Davis with RE/MAX Premier Group are here to assist you with all your Real Estate Needs. We are always available at 813-300-7116 to answer your questions or you can simply click here and we will be in touch with you shortly.

Need to get started with your mortgage process? You can contact Kyle Edwards with Iberia Bank at 813-495-5131, or simply click here to start your online application.

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