With inventory in the housing market low, you may be considering buying a fixer upper rather than a move-in-ready home. You may also decide that a major renovation project on your existing home is best if you haven’t found the right fixer upper to purchase. Sandy Spring Bank has many options and can guide you through the process while saving you time and money. First, let’s look at some key things you should consider before deciding which path to take.
How much of a fixer upper is the home?
A fixer upper or renovation project on a home could be as straightforward as cosmetic changes such as tiling, carpeting, and painting. However, it could need extensive renovations that will take more time, money, and expertise. It’s essential to define what changes are necessary to achieve your goal and decide your best options while avoiding any pitfalls.
Advantages of buying a fixer upper or renovating an existing home:
Things to be mindful of:
How can you finance a fixer upper or existing home renovation?
Sandy Spring Bank has the right programs to help you make the smartest financial choice for your family. Our construction-to-permanent financing program can provide financing for your purchase and construction rolled into one convenient loan. You can lock in a permanent mortgage interest rate and have the flexibility needed to renovate while saving time and money with one loan verification and set-up. When the construction process concludes, the loan rolls over into a traditional mortgage.
Buyers may also want to consider a home equity line of credit (HELOC) with Sandy Spring Bank to finance a fixer upper. This option provides homebuyers with cash for a home remodel and allows them to use home equity for repair costs. That said, if you decide this option is right for you, make sure you plan to reside in the home for a long time. Otherwise, you could find yourself upside down on your mortgage if the real estate market fluctuates.
Whatever you decide, Sandy Spring Bank has the right tools and expertise to guide you through the best financial path for your family and answer any questions you have along the way. To learn more about financing a fixer upper or renovating your current home, contact our Mortgage Team or give us a call at 800.399.5919.
This publication does not constitute legal, accounting or other professional advice. Although it is intended to be accurate, neither the publisher nor any other party assumes liability for loss or damage due to reliance on this material.