Unleash the Potential with Construction and Renovation Loans

Matt Boytz

December 19, 2024

Home Loan Programs
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Local Mortgage Report
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Uncategorized
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New Builds and Renovations Made Easy

I’m excited to talk about two of my favorite product types – our construction and renovation loan programs! These aren’t just any loans; they’re the tools that can turn your dreams into reality, whether that is building a home from the ground up or transforming an existing one. We offer Conventional, FHA, and VA loans for both construction and renovation, generally with same low down payments as their standard products.

Dreaming of Building Your Own Home?

If you’re planning to build a new home, you might already have the perfect plot of land or you might still be on the hunt for that ideal spot. Either way, I’m here to help. Our construction loans are designed to fund your project from start to finish, ensuring you can build your home exactly how you’ve envisioned it. With these loans, you control the design, materials, and ultimately, the outcome of your build. These work for both Stick built and manufactured homes.

Revitalizing an Existing Home?

Now, let’s talk about turning the not-so-perfect into your perfect home or rental. It doesn’t matter if you’re eyeing a property that’s seen better days or simply one that doesn’t quite meet your needs—our renovation loans are the answer. These flexible financing options can cover everything from basic cosmetic updates, to pools, to extensive renovations like room additions or even constructing accessory dwelling units (ADUs)- attached or detached. You get to redefine the space and bring new life to an old structure. These are also allowed on manufactured homes, and investment properties.

When used for an investment property you can save yourself a substantial amount of money by taking a R out of the BRRRR method. These programs combine purchase price and renovation costs. Your down payment is based on that combined amount. That allows for less out of pocket. It also allows us to use an as complete value on your home that other loan types wont allow. These can also be used on existing homes. Maybe you want to turn a 1,000 square foot home into 4,000 square feet. This program allows us to use the value of the home after future renovations, This is normally what kills HELOCs for these projects since they use an As-Is value.

What’s the Difference Between Renovation and Construction Loans?

Here’s a quick breakdown:

  • Renovation Loans: Ideal for projects where a portion of the home will remain. Think significant home improvements, expansions, ADU’s, shops, or internal remodeling. On a purchase our renovation loans bundle the purchase price and renovation costs into a single loan, making the financing process seamless. You deal with one application, one loan approval, and one closing process. If it is a home you already own, we bundle the existing mortgage debt and construction costs into the new mortgage amount and do this as a refinance with just a few added items.
  • Construction Loans: These are for starting from scratch. When you’re building a completely new property, a construction loan covers everything from buying the land to paying for the construction itself. Like renovation loans, the aim is simplicity, but these loans focus on entirely new developments.

Why Choose These Loans?

Choosing between a renovation loan and a construction loan depends on your project’s needs, your financial situation, and what you’re hoping to achieve. If you’re renovating, you’re preserving a bit of the past while updating it for the future. Since we live in Oregon, there also can be property tax benefits to the past. If you’re building new, you’re creating something entirely your own from the soil up. In both cases, I guide you through the entire process, helping you navigate the complexities of financing to find the perfect solution for your goals.

Lastly, the renovation loans on a purchase can get you some instant equity. If you are buying a uninhabitable house to renovate in your primary you can outbid the house flippers since you don’t have to worry about a profit margin. But that also means your only competition are house flippers and investors. Your offer will likely be able to be higher than theirs, and even after your remodel you should still see a pretty decent amount of equity in the property.

Ready to Start?

Every great project begins with a simple conversation. If you’re ready to explore your construction or renovation loan options, give me a call at 541-359-7212 or visit our website at www.bendmortgagebrokers.com. Let’s make your dream home a reality!

Matt Boytz author

Matt Boytz
Direct: 541-359-7212
Office: 541-972-8616
NMLS 1294957
NMLS 2552455
Matt@BendMortgageBrokers.com
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www.BendMortgageBrokers.com