Home Improvement Loans
By: Joe Bayer Jr. 
There are many things to consider when deciding which loan program best suits the needs of a home buyer or homeowner looking to refinance. Home improvement loans or what those in the mortgage business refer to as Renovation mortgage programs have many benefits but are sometimes overlooked as an option. Let’s explore home improvement loans and discover the many benefits.
Our Renovation Mortgage Programs allow homebuyers/homeowners to purchase/refinance a home plus make improvements. This is desirable for a number of reasons.
• There is one application, one loan approval, one closing and one monthly mortgage payment.
• Financing is based on an appraiser’s estimate of “After Improved Value”.
• Conventional, FHA, VA, and Jumbo loan options are available.
• Homes in most any condition can be financed, including owner-occupied, second home and investment properties.
• Renovation can include virtually any upgrade, repair or improvement purpose.
Who is most likely to benefit from a renovation mortgage program?
• Buyers walking away from a house in their price range because it doesn’t have what they want even though it is in the neighborhood they desire.
• Buyers not interested in a fixer-upper because they don’t know how they’ll finance the improvements.
• Buyers trying to buy a home where current property condition does not allow for traditional financing.
• Customers that currently own a home that they want to renovate and are looking for financing options.
What is the value of Renovation financing?
• Allows homebuyers to add their personal touch to the home.
• Fulfills two needs — purchase or refinance and renovate — with one loan and one monthly mortgage payment.
• Allows renovation to begin after closing.
• Includes wanted and needed renovations such as additions, upgrades, energy-saving improvements, and handicap-accessibility modifications.
• Makes renovation costs more affordable by spreading them throughout the mortgage term.
• Allows the borrower to complete renovations all at one time opposed to one upgrade at a time.
What value does Renovation financing bring to REALTORS?
• Sets the agent apart from their competition.
• Helps the Realtor® overcome the challenges of selling a home in need of repairs, such as aged homes or fixer-uppers.
• Makes aged properties more marketable to a new generation of buyers that are interested in purchasing and remodeling homes.
• Increases the number of potential buyers.
• Sellers don’t need to make or pay for repairs prior to listing.
First Integrity Mortgage Services is uniquely able to deliver this loan product. We have a Renovation Specialist and a dedicated team (Coordinator, Processer, and Underwriter) with a focus on delivering an exceptional customer experience when using one of these products. If you think that a Renovation Loan might be right for you, or if you are a Realtor® interested in making this option available to your clients, contact us today!