Would you rather be a guest on HGTV's Property Brothers or House Hunters? According to 2018 Zillow Group Report on Consumer Housing Trends, the overwhelming majority of homeowners would rather renovate their current home instead of looking for a new one.
10,000 adults were polled and 76 percent of respondents said they would rather use a set amount of money to upgrade their existing home rather than use it for a down payment on a new residence.
For retired or older Americans, the numbers were even more lopsided. 87 percent of people who are 55 years or older and an astonishing 91 percent of retirees cited a preference to renovate instead of moving.
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Renters and younger Millennials were among the groups who opted for hiring the moving van instead of upgrading their current homes, but perhaps this is no real surprise. Many in this category are looking to purchase their first home.
The recent report also found 83 percent of respondents saying that they love their home, while 63 percent had no plans to move.
So if you don't have a large stash of cash to do your renovations, what do you do?
Doing a renovation of your existing home if you don't have access to extra savings or if your money is tied up in the equity of your home.
This is where a renovation loan can help. Loan like FHA's 203k or FannieMae's Homestyle products are great for homeowners that want to make upgrades to their home.
Once a bid is obtained from a contractor, the lender will order an appraisal where they will take into account the new repairs and upgrades, and they will give your home a value based on the completion of those renovations.
Once that value is determined, you can include the costs of the renovations into a new 1st mortgage up to 97.75% for an FHA 203k loan and up to 95% on a FannieMae Homestyle Loan.
If you'd like to see how a renovation loan might work for you, you can get a quick quote here, or reach out to our office at 256-734-6012.