Many home owners and buyers are unaware of the financing programs available to cover home renovation costs. Wells Fargo mortgages with built-in financing for renovations can expand options for consumers who want to create the home of their dreams.
A recent Wells Fargo survey, How America Views Homeownership, found that only 15 percent of respondents had ever heard of renovation loans. The proportion of millennials – the generation most likely to be buying homes in the near future – that had heard of them was even smaller: just 10 percent.
At the same time, people have high expectations as they shop for properties:
- Nearly 90 percent agree that when thinking about buying a home, they’d want to make sure it fits all of their needs in terms of location, size, finishes and so on.
- More than 20 percent identified “Finding a property that has everything I'm looking for” as a barrier to buying a home.
- Almost half said there are no homes in their city or region and in their price range that they would want to buy.
So people want it all, but few are aware of a financing option that may help them get it. That’s where you come in.
Wells Fargo offers two renovation financing options, Purchase & RenovateSM and Refinance & RenovateSM loans. These loans let a customer purchase or refinance a home plus the improvements in one loan. If a first-time homebuyer couple finds a house in a neighborhood they love but it needs some sprucing up, a renovation loan can let them do both. Or if a growing family needs a place with more space, but they just can’t find one that has the perfect combination of features, they can buy one that’s available and modify it to meet their needs.
The usual process to remodel a current home or buy one that needs repair or modernization can be complicated and costly. Construction or home improvement loans often have relatively high interest rates, short repayment terms and a balloon payment. Mortgages with built-in renovation financing offer a simple option: a single, long-term, fixed- or adjustable-rate loan that covers both the home purchase or refinance and the remodeling.
Once they know about this option, homebuyers may go from “There’s nothing on the market I want” to “Look at all the possibilities!” For you, that could mean more customers looking to make a home just what they need.
Learn more about Wells Fargo’s purchase and refinance renovation loans, or email for more information.
Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. NMLSR ID 399801.