What is a renovation loan?
In this episode of RenovatEd, Jennifer Goldsby discusses the intricacies of renovation loans from both the home buyer’s and homeowner’s perspectives. She explains how these loans work, the different types available, and the processes involved in securing them. The conversation highlights the importance of understanding future property value and the steps necessary to initiate renovations after obtaining financing.
Takeaways:
- A renovation loan allows home buyers to roll in repair costs.
- Homeowners can also access renovation loans to improve their existing homes.
- Different types of renovation loans include conventional, FHA, VA, and USDA.
- Finding a renovation lender can be challenging but is essential for financing.
- The loan amount can be based on the future value of the home post-renovation.
- Home buyers need to get pre-approved for their mortgage before shopping.
- Homeowners should research and reach out to lenders for renovation financing.
- The appraisal process is crucial in determining the future value of the home.
- Gathering conditions for underwriting is similar to traditional mortgage processes.
- Permits must be pulled before starting any renovation work.
Chapters:
- 00:00 Understanding Renovation Loans
- 02:52 The Process for Home Buyers
- 05:51 Navigating Renovation Loans for Homeowners
- 06:09 Introduction to the Podcast and Legal Disclaimers
