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I saw an interesting article recently in the Denver Post. The article was titled “record monthly decline in home inventory”. and focused on our housing market, particularly the current inventory of homes available. Basically, the article told us to not expect a “bountiful banquet” of properties to be
available in 2020 – i.e., if you’re hoping to move this year, don’t expect the inventory of available housing to increase any time soon. What does this mean to you if you already are a homeowner? Basically, that you are more likely than ever to stay in your home.

So, what if you are now thinking about renovating your home – perhaps a major remodel like updating your kitchen and bathrooms, finishing your basement, adding the master suite you’ve always wanted or perhaps putting in that brand-new garage. I have been talking for years about my “refinance and
renovate” product – where you can refinance your mortgage with a home renovation loan and put the renovation money in to your new mortgage!

And the best part of these loans? You don’t need a lot of equity in your home because these loans are based on the “after-improved” or post renovation value of your home. If you have a bunch of equity, say you owe $200k and your house is worth $400k you can access your equity with a cash-out refinance or a home equity loan. Not many people have this situation. But let’s say that you owe $350k and your house is worth $400k – then a home renovation loan is perfect for you!

Quick example of an actual loan I closed recently:
Customer purchased a property in 2014 in the Park Hill neighborhood. They owed $225,000 on their current mortgage, it was worth as is $350,000. The wanted to add a new master suite and about 600 square feet to the property. Their renovation bid from their contractor was $175,000. There was NO
way they had that much in equity and no way they could get an equity line for that much. So – they came to me, we put the renovations and what they owed together for a new $400,000 loan and the appraisal came back “after-improved” at $550,000! They had no other way to finance this without the
Fannie Mae “Homestyle” home renovation loan. So…..the situation above is a bit extreme, not everyone is wanting to do a $175,000 remodel but if you
want to do the ol’ HGTV touch to your home, I’d love to help!
Please contact me any time for a consultation 303-668-4499 or by email
tom.yoswa@caliberhomeloans.com