Renovation Loans - The New Way of Buying an Older Home
George Ward worked on this.
While Renovation Lending has been around for years, the most recent dramatic changes to Renovation Lending were made as part of The Housing and Economic Recovery Act of 2008.
Imagine being able to purchase an older home and include re-painting, new flooring, new appliances and more into the loan. In many cases now buyers can do just that.
It makes very little sense now for anyone to buy a home that they are planning on using as their primary residence without using a renovation loan when it is possible to due so. While it is not possible to use a renovation loan in many circumstances, chances are that more often than not a renovation loan can be done - in particular if the house purchase price including renovations is still less than the local FHA maximum. There are USDA Renovation Loans and other various types.
In short, easy usage of renovation loans is still very NEW. Your neighbors and friends probably are still unaware of the amazing possibilities of these programs!
