As homes age, more homeowners are looking to remodeling to spruce up their properties. Of the nation’s stock of 137 million units, nearly 80% are at least 20 years old, and 40% are at least 50 years old.
Freddie Mac says its new mortgage product will help home buyers or homeowners finance or refinance fixer-uppers. Eligible buyers will be able to finance the purchase of their home and the cost of renovations into a single-close mortgage.
“Research indicates a large number of older homes need repair and renovation, either to meet the needs of current owners or as a viable option for new home buyers,” says Danny Gardner, Freddie Mac’s senior vice president of single-family affordable lending and access to credit. “The ‘ChoiceRenovation’ solution gives borrowers the opportunity to make improvements, renovations and upgrades to a home using a purchase or no cash-out refinance loan that will be eligible for sale to Freddie Mac. This provides the borrower with a convenient cost-saving option for financing renovations.”
Borrowers can also use the ChoiceRenovation mortgage to renovate and repair a property that has been damaged in a natural disaster or for renovations that will help the borrower prevent damage from a future disaster, such as storm surge barriers, foundation retrofitting, or retaining walls.
Gardner says Freddie Mac is launching the new mortgage to offer more flexible financing options in responding to “the increasing age of existing housing stock, the growing number of millennial and other first-time homebuyers looking for more affordable homebuying options, and the increase in retirees opting to age in place.”
The new program should make fixer-upper loans more widely available, though an FHA-insured Section 203(k) loan is another option that has been around for a while.
Source: Freddie Mac
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Crystal Crystal Coovert is a Florida-licensed Realtor® at Michael Saunders and Company in Punta Gorda, Florida. Crystal is a member of the Punta Gorda/Port Charlotte/North Port Realtors® Association and is chairperson of the 2019 Leadership Academy; Florida Association of Realtors®; National Association of Realtors®; Women’s Council of Realtors and is Program Director; is a Certified International Property Specialist (CIPS), a designation achieved by only a small percentage of Realtors® worldwide, as well as a Seniors Real Estate Specialist (SRES), Pricing Strategy Advisor (PSA), Short Sales and Foreclosures Resource (SFR), and At Home With Diversity (AHWD) certified.
Crystal can be reached by phone or text at 941-322-7133 or by email at CrystalCoovert@MichaelSaunders.com.