People buy homes for many different reasons. Sometimes you want more space or move into a better neighborhood. You might be relocating for a job or be closer to family. Whatever the reason, a home also serves as a major investment for you. You want to maximize your property’s value. That means making certain that home maintenance and any needed repairs are done in a timely manner. But what about home renovations? Some renovations can improve the value of your home, but other renovations may be too costly to add to the value. How do you navigate through this minefield?
Cliffco Can Help You Find Home Improvement Loans
If you’re ready to go ahead with a home improvement project, a big concern might be financing. Cliffco Mortgage Bankers can help. We can connect you with loan programs that are offered to homeowners to make home improvements. We can also talk to you about ways to tap into your home’s equity to pay for renovations. That’s why we want to tell you a little bit about some of the things you should be thinking about before you decide to go ahead with a home renovation plan.
Tips on Using Home Renovations to Improve Value
According to HuffPost, there are certain things you should keep in mind while searching for a contractor or planning a renovation. Homeowners should always understand that just because a renovation is expensive, that extra expense won’t necessarily translate into a higher valuation of your home when it’s appraised.
Also remember that if you overpay for your renovation, a potential home buyer can conceivably buy a non-renovated home and do the same job for a smaller price. Make sure what you’re paying is in line with other renovations done in similarly priced homes in the area. Keep your eyes out for renovations that do boost values, very often jobs that increase energy efficiency in your home. Things like adding higher efficiency windows or adding solar panels or solar water heaters. But note communities differ on how much they value certain jobs so know your individual real estate markets.
Available Home Renovation Loans
If you are looking for financing for your home renovation. Cliffco recommends a variety of different ways to do it. One way is a 203 (k) rehabilitation loan. There are two versions of this loan. One is limited to repairs that cost $35, 000 or less. The other is a full loan, that pays much more. The Federal Housing Administration (FHA) does mandate limits on these loans depending on the area of the country where you live. The limits range from about $270,000 to $730.000.
There are also several ways to tap into your home’s equity to take care of your home renovation. One popular way is to take out a Home Equity Line of Credit (HELOC). You must meet certain guidelines to qualify, but if you do, you’ll get a lump sum equal to the equity that you have in your home.
Cliffco Mortgage Bankers Can Match You With the Right Loan
Whether you’re looking for a home renovation loan or if you’re looking for a loan to buy a home, Cliffco Mortgage Bankers will work with you to find the right option. We help our customers achieve the dream of home ownership, and we can help you. Contact Cliffco today.