Home Renovation Loan?
We are planning to buy a foreclosure and want to renovate it. The cost of house is between 300-310K and the cost of renovation will be around 30K. We are first time home buyers but we are going to put 20% down payment. We will still be having some money for the repairs and renovation. I am not sure it will be good to use our savings for this purpose. Can we add renovation cost in the mortgage and save with lower mortgage interest as compared to separate loan from the bank? What is the best possible way to finance this renovation project?
Thanks a lot!!!
No you cannot add the costs. A mortgage lender will not give your more than 80% of the appraised value. No guarantee they will even give you 270K You need to see what the lender’s appraiser says.
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