A renovation loan gives you the funds to make renovations to a home or access to the credit to make those changes. Available for buying or refinancing a home, renovation loans roll mortgage and remodeling costs into one loan. These loans are based on a home’s estimated value after renovations, which allows you to borrow more than a traditional home equity loan. By improving the value of the home, the renovations can help you build equity faster than you could buying a move-in ready house, giving you more control over the value of your property. Renovation loans help restore homes in disrepair. They also make a way for you to purchase in pricier neighborhoods at a more affordable rate since homes that need work are usually listed below market value. Other advantages over traditional methods of financing include:

• You avoid running through your savings or maxing out credit cards to pay for needed repairs and wanted upgrades.
• Combining your mortgage and your remodeling loans helps simplify your monthly bill paying and may lower your interest rate.
• You can claim a larger tax deduction by combining renovation and mortgage interest. *
• You can build equity faster by increasing the value of your home.

* Approved Mortgage Solutions is not licensed to provide tax advice. For more information on tax deductions, please reach out to your licensed tax advisor.

To find out about the different type of renovation loans available to you or to get pre-approved for a renovation loan for a purchase or refinance, please click the Get Approved button below. Still have some questions? Call your licensed Approved Mortgage Solutions mortgage broker at the phone number below or Contact Us and we’ll reach out to you.