What Can You Do with a HomeStyle Renovation Loan? The Short Answer: A Lot!
If you find the almost-perfect home, one that has the best location, the right floor space, and the perfect amount of rooms, but also needs repairs and maintenance, you might pass on the property.
Before you disregard the almost-perfect house, take some time to learn about HomeStyle Renovation loans. With these loans, you can not only purchase the property, you can secure financing to make a wide variety of improvements…
What Type of Renovations Can You Perform with a HomeStyle Renovation?
Adding an “AUD”
One of the most significant options for HomeStyle Renovation loans is the chance to add square footage to your home, which can come in the form of a new bedrooms, the expansion of a living room, or the construction of an accessory dwelling unit (ADU).
Also known as “granny flats,” accessory dwelling units can be welcome additions to a home, as they can give you additional space for a growing family. In many cases, they are used as housing for an aging parent, allowing sons and daughters to care for their parents while providing a comfortable, separate, private dwelling to Mom or Dad.
According to Curbed Los Angeles, these small residences could help alleviate the housing shortage that has impacted LA and other California cities. Changes in state law have made construction of these facilities even easier, giving homeowners greater flexibility with their property.
Some houses look perfect from the street, but when you take a closer look at the property, you find there are many significant issues with the residence; issues that may not be easy to see, but make the house less livable and less safe.
Foundations, for example, are a vital structural component of any home. Without a sound foundation, the house can leak, tilt, crack, and have a myriad of other problems. These issues need to be repaired as quickly as possible; using a HomeStyle Renovation loan allows you to repair the issue. You can use the funds for roofing, gutters, windows, and other structural and functional issues.
Another common use for a HomeStyle Renovation loan is making cosmetic changes to the house. You are not limited to just structural, necessary changes in the home, such as foundations and roofing, as you can use the funds from one of these loans to make changes that enhance the visual appearance and overall enjoyment of the home.
For example, a kitchen remodel is far from a necessary change. You can’t really argue that new custom cabinetry and granite countertops are necessary to the property, but with these loans you can actually make those revisions. From new paint in the living room to a new shower in the bathroom, you can make a wide variety of cosmetic changes to your home.
Many homes suffer from energy inefficiency. The heater may use an excessive amount of energy; the windows may be leaky and allow warm air to escape; the toilets may use a disproportional amount of water. The list is seemingly endless, so if you are looking to purchase a home that is not energy efficient, the HomeStyle Energy Mortgage program may be right for you.
With this renovation loan, you can complete a large variety of energy upgrades. You can install new windows or insulation to reduce heat loss in winter. You can install low-flow toilets to reduce water use. You can even install solar panels to give your home a clean source of energy.
An electrical problem is nothing to ignore. According to the Electrical Safety Foundation International, an estimated 51,000 fires are caused by electrical issues, and electrical systems are the third-leading cause of home fires. Electrical issues result in $1.3 billion in damage, making it a significant economic issue as well, but the most serious stat is the 500 deaths that are caused by electrical fires every year.
To help reduce the chances of electrical fires and safety hazards, HomeStyle allows you to make electrical upgrades and repairs to your property. From new wiring to convenience upgrades like dimmer switches, you can improve both the effectiveness and the safety of your home’s system.
In old or unmaintained houses, plumbing systems often need repairs or large-scale replacements. With a HomeStyle Renovation loan, you can replace the plumbing and pipes in your home, including drainage pipes, incoming water pipes, and more.
If you decide to add a granny flat or ADU, you may need to add new plumbing features to the addition, which can be done with these loans. Even common fixes are often needed, such as sealing leaky pipes, installing new faucets, or repairing or replacing the water heater.
Protection for Home Against Natural Disasters
You never know when a natural disaster will strike, so no matter where you live, it helps to have a home that is properly prepared to deal with a barrage of weather. With a HomeStyle Renovation loan, you can get financing to protect your home and your family.
These loans allow you to complete many disaster-protection projects, including the construction of storm surge barriers, foundation retrofitting for earthquakes, and tree removal in fire zones. You can also build retaining walls or install a radon remediation system to enhance overall safety.
Complete the Construction of a House
If a home has not been completed, most homebuyers will completely pass on the property. After all, who wants to deal with the completion of construction when there are plenty of ready homes on the market?
By using a HomeStyle Renovation loan, you could purchase a property that is at least 90% complete, which gives you the opportunity for an excellent deal on the price of the home. To qualify, the remaining improvements need to be related to the non-structural items that the original builder was unable to finish, which can include flooring, cabinets, appliance installation, fixtures, and trim work.
The Assistance You Need for All Renovation Loans
If you want to learn more about HomeStyle Renovation loans, contact San Diego Purchase Loans today. We understand the value of renovation loans, and we’ll use a common-sense approach to underwriting to help you get approved!