This year, we’ve seen record low interest rates which have consequently spiked demand for houses. As a result, home prices have increased, and house inventory has shrunk. Bidding wars are rampant and getting a good deal on your dream house isn’t as simple as it once was. But maybe buying a move-in ready home isn’t the only way to upgrade your living situation. If you find yourself looking for a new home but running into these problems, a renovation loan may be able to help!
If you’ve been searching for a home, you might already have noticed that houses for sale seem to be scarce. According to the National Association of Realtors (NAR), total housing inventory at the end of August was down 0.7% from the month before and down 18.6% from the year before. The average amount of time properties were on the market in August was down 31 days from the same month in 2019, meaning houses are selling significantly quicker than they did last year. Finding the right house and buying it has proven to be much more challenging this year.
Surging demand for houses has caused an increase in prices due to bidding wars and competing buyers. The low rates that have been prevalent since the pandemic have caused buyers to swarm the market, looking to take advantage of them to purchase a house. To add to this, many people have been ditching their city apartments to purchase homes in rural areas, further decreasing inventory and boosting prices. As buyers eagerly put in offers, homes are selling for more than the asking price. This makes it difficult to not only find the right home but get it at a good price.
If you’re having a difficult time buying your dream home, there is another way to achieve your goals. Using a renovation loan to purchase your home can help you open up your options when it comes to buying a new house. If you were only considering move-in ready homes, deciding to purchase and renovate can increase the pool of homes available to you. With the ability to fix things up or make upgrades, suddenly homes that didn’t seem right at first glance now have potential. Plus, you get the added benefit of customization. By purchasing a home to renovate, you get to personally select the features you’re upgrading, tailoring the house to fit more closely to your needs.
A renovation loan is a convenient way to purchase a home while including the cost of repairs and updates in the mortgage. Getting a renovation loan can help you create your dream home from any house. Just contact us to speak to a Loan Originator who will be happy to help explain the process to you and answer any questions.
Homestead Funding offers exceptional customer service and a convenient mortgage process. Whatever your financing needs, our goal is to exceed your expectations.