How Renovation Loans Like 203(k) and HomeStyle Can Help Homebuyers

[Ben Fernandez]

In today’s competitive real estate market, where inventory is tight and opportunities seem few and far between, many potential buyers are overlooking a game-changing option: renovation loans like the 203(k) and HomeStyle. These products allow you to purchase a home that may need some work and roll the renovation costs into your mortgage. 

Instead of being discouraged by a property that doesn’t quite meet your needs, why not see it as a chance to personalize and add value right from the start? In this low-inventory environment, the right renovation loan can open up possibilities that you might have passed by otherwise. 

After all, many buyers are buying renovated homes anyway. In this scenario, you might even walk into equity when your project is completed.

I'd bet most homebuyers have no idea they can flip too...And they certainly aren't privy to the off-market deals that someone like myself is privy to.

In my area I have access to many buying opportunities that the public market will never see due to them being off-market. However, I see countless opportunities where the deal is ideal for a 203k buyer when on-market and off-market. 

Like with so many things, awareness and access to information leads people to take less favorable options when spending their money.

In having substantial experience as an investor, where these projects are second nature, I'm making it a priority to partner with buyers to guide them through the process. This way they can take advantage of programs they have access to but have little knowledge of (for the largest purchase of their life).

Have you considered a renovation loan in your home search? What’s your experience with using these options to unlock potential?

I'm curious if others are seeing similarities in your markets. Feel free to connect.