Did you know that Prime Lending has over 18 diverse types of renovation financing available for primary, second, and even investment homes? Most traditional mortgage companies try to stay away from the complexity of renovation financing because of the additional work that goes into them… we do not.
Arizona is a market that is constantly changing, but never losing interest. We have the historic district that is constantly taking new shape; and the plethora of homes that need to be “de-tuscanized” from right before the crash. As a traditional mortgage lender, our average loan amount this year has been in the $240,000 range over all our loan products. In that price range, I am seeing countless offers being placed on “turn key” homes. Many of our borrowers are going through multiple homes before getting a bid ever accepted. The same is happening for our traditional buy and hold investors. Buy and hold investors are looking to purchase properties in highly desirable areas, that will rent out fast, for top dollar. With all of these parties competing in the same price range, it’s no wonder why prices having been climbing! This is where renovation financing comes to save the day.
Our renovation loans are the perfect key to unlock the homes that a seller won’t sell cheap enough to a flipper; but are too expensive for a retail buyer to purchase with the amount of upgrading that it may need. For the buy and hold investors, our EZ C program is the perfect program to roll into your mortgage from the start a nice facelift to get the home “rent ready”. A borrower can use Home Depot or Lowes for products, and to do the install in which we pay 100% upfront to do the job. Buyer gets in contract with the home, they give it a quick facelift with paint, flooring, etc.; and boom ready to rent out. Whether it’s for a quick fix and flip, long term hold, or even just a borrower looking to renovate their primary home when obtaining the new original loan, they can do so. These programs are extremely underutilized and can open the doors to new opportunities no matter what your end result goal is.
1. Don’t open new debts while in contract
2. Don’t quit your job
3. Don’t deposit substantial amounts of cash into your bank account.
4. Disclose all debts
by Andrew Augustyniak, Branch Manager