Why renovation home loans are a great tool to consider!

I’ve seen firsthand how renovation home loans can be a stepping stone for a family to get into a market they were otherwise locked out of. One particular family in Soquel needed to be in a certain location for school and work purposes. But the homes around there were selling quickly and beyond the top of their budget. We saw a property that was a great fit but it was in rough shape and couldn’t qualify for a conventional loan because it had no functioning heating system and part of the home had been turned, without permits, into a separate studio. We were able to work with Dimitri at Guaranteed Rate to get a renovation loan that factored these costs in and successfully get the house in contract despite competing with investors. The reality is investors need a much deeper discount than the seller wanted to give and my clients wanted a home. It worked out for both parties. Years later they are still there and the property values have increased significantly. They are incredibly happy that they were able to get into a market using this product and you can too!