Purpose Home Loans
At Purpose Home Loans, we understand that finding the right mortgage in California can be
overwhelming. That's why we offer personalized business services to guide you through the process
with ease. Our team is dedicated to helping you achieve your homeownership goals, whether you're
a first-time buyer or a seasoned investor. Let us take the stress out of securing a mortgage, so you
can focus on turning your house into the home of your dreams.
What Home Renovation Loans are Available for YOU?
As a home owner you have access to multiple types of home renovation loans! Lenders understand that in most markets a renovated home has more value than a home needing updates. Usually this value increase is exponentially more than the cost of the project! Whether you are looking to pay cash for your project in order to refinance and remove PMI or you are wanting to finance the project, we are here to help.
Many home owners choose to purchase a home with as little down as possible in order to save money for renovation. This is a great way to make your home your own and put yourself in a position to refinance into a lower rate and remove your PMI. Many of our clients prefer this option since some of our lender partners offer the lowest PMI in the nation, giving the home owner more wiggle room in their budget.
If you are a home owner looking to finance your project, keep in mind that lenders are constantly coming out with new and improved financing options to help make your renovation dreams a reality. Many of our clients start with a Home Equity Line of Credit. HELOCs allow you to pull from your home or investment property's equity and establish an account to pay for expenses. Think of a credit card that requires payments back to the account, but with a HELOC the interest rate is much lower.
A Cash-Out Refinance is another common option. It allows you to take a larger sum of money from your equity and into your bank account. This is more common for larger projects, or for those needing to remove PMI and lower their interest rate. This refinance also re-casts your mortgage to another 30 year term from when the refinance is complete. Not only will you have access to your funds immediately, but more often than not you will lower your monthly mortgage payment.
One of the last option we typically see in today's market is a Hard Money/Interest Only Renovation loan. This option is more common for those looking to buy a fixer that will be refinanced when renovations are complete, or those home owners who want to sell their home, an inherited home, or a relatives home after the renovations are complete. These are short term loans and allow you to keep the monthly payment as low as possible so you can sell or refinance quickly.
As we discussed, there are many options for home owners, investors, first time home buyers, etc. Schedule a time today to talk with one of our professionals to see what the best options is for you!
