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House-to-Home Renovation Loans Offer Options for Agents and Home Buyers
If you’ve been house hunting—or if you’re an agent with a listing that needs work—you’ve probably been there: A home has great bones or offers a lot of space for the money, but some aspects of its condition are likely to frighten most buyers away. With a unique financing option available for homes in need of renovation, however, the property might actually be more desirable than you think.
Our House-to-Home renovation program is designed to make mortgage financing for properties in disrepair more accessible by combining the estimated costs of repairs and the home's purchase price into a single loan. Renovation financing can help home buyers turn a house they like into a home they love, and our loan options may help real estate agents present possibilities in a property, leading to a sale.
The House-to-Home renovation program offers a number of advantages:
- The program offers a 30-year mortgage with a fixed interest rate that will remain the same for the life of the loan.
- Purchase and rate-term refinancing options are available.
- Unsafe homes can be made habitable, which can help improve the neighborhood.
- Buyers may be able to get more house for the money and cover improvement costs.
- The square footage of homes can be increased at a lower cost.
- Agents can offer a greater inventory and close more sales.
There are two types of renovation loans: The FHA 203(k) loan programs for properties that won't need structural repairs, and a conventional loan program for properties that do need structural work. Most types of home improvements are covered with the exception of "luxury" features such as swimming pools or landscaping.
If you choose to purchase, refinance, or market a home that may be eligible for 203k financing, having knowledgeable mortgage professionals to assist you is important. Whether you are a first-time home buyer or an experienced real estate professional, our renovation specialists can help you find the right renovation loan program for your needs.
Buying a home doesn’t have to be stressful. After all, finding and moving into that special home should be one of the happiest moments of your life. If you know what to expect—and you have a knowledgeable team of real estate and mortgage-lending professionals to assist you—finding and financing your first home can be an exciting and rewarding experience. Here are the basics of what you need to know:
Before you even begin to shop, obtain a mortgage preliminary approval. We recommend our Buyer Advantage preliminary approval! 1 We’ll need your most recent 2 years of W-2’s and tax returns, the last 30 days of pay stubs, and 2 months of bank statements. Qualified borrowers will receive a mortgage commitment letter upfront, subject to an appraisal. Some lenders only offer a pre-qualification letter, which doesn’t verify any of the information you provide. A mortgage commitment letter, though, is an important first step and will help you determine how much home you may be able to purchase and can strengthen your bargaining position with sellers.
Once you are issued your preliminary approval, you’ll work with your real estate agent to find the right home. It helps to determine your needs and create a wish list of desirable features. While you visit homes, take notes to be able to determine which homes may warrant a second visit.
Once you find a home you like, you’ll make a purchase offer. Your real estate agent will present your offer to the seller, who will then choose to accept, counter, or reject the offer. When a price is settled on, you and the seller will sign a Purchase Agreement, defining the terms of the sale.
The next step will be to complete the loan application process. If you have already obtained a mortgage preliminary approval, contact your mortgage consultant and let them know you have a contract on a home. They will update your loan application and help you to proceed with the home financing process. If you were issued a Buyer Advantage preliminary approval, most of the work is already completed!
Next, the home will be appraised. An appraisal is a formal, written estimate of the home’s current market value. Your lender will review the appraisal and note any conditions that may be required prior to closing on the loan. You will be provided a copy of the appraisal.
Once any remaining conditions are submitted including the appraisal, title insurance and homeowners insurance, we will issue a final commitment and finalize the details of your closing with your real estate agent and your settlement agent. Your closing documents will be prepared, and you will go to settlement. Make sure you talk to your settlement agent about how you should prepare the funds needed for closing. Today, a wire from your bank is the most popular way, but you may be able to provide a cashiers’ check or money order.
Congratulations, you become the proud owner of your new home!
We hope you have found this overview helpful; contact your local mortgage consultant for more details!
1. Edina Realty Mortgage Buyer Advantage is not a loan approval. A Commitment Letter is based on information and documentation provided by you and a review of your credit report. The interest rate and type of mortgage used to approve you for a specified loan amount is subject to change, which may also change the terms of approval. The interest rate cannot be locked until your offer to purchase a property has been accepted. If the interest rate used for credit approval has changed, you may need to re-qualify. Information provided by you is subject to review and all other loan conditions must be met. After you have chosen a home and your offer has been accepted, final loan approval will be contingent upon obtaining an acceptable appraisal and title commitment. Additional documentation may be required.
If you’re in the market to buy a home, wouldn’t it be nice to have help winning a multiple-offer scenarios? Our new Edina Realty Mortgage Closing Guarantee can help you do just that!1
By now, you may have heard about the Edina Realty Mortgage Buyer Advantage program, which allows borrowers to complete much of the home financing process and obtain a commitment letter before searching for a home.2 A commitment letter can set your purchase offer apart from others a seller may be considering, but even that may not be enough to land the deal.
That’s why we’ve decided to take a BIG step and offer the Edina Realty Mortgage Closing Guarantee to our clients.
Here’s how it works:
- Qualified clients obtain a Edina Realty Mortgage Buyer Advantage commitment letter.
- Our clients find a property and submit the commitment letter along with the Edina Realty Mortgage Closing Guarantee certificate.
- When all loan program conditions are met, we guarantee an on-time closing,
- or Edina Realty Mortgage will pay the seller $12,500!
Consider these offers from a seller’s point of view:
Offer 1 — No mortgage pre-qualification letter
Offer 2 — A lender pre-qualification letter, signed by a Mortgage Consultant
Offer 3 — A fully underwritten commitment letter, signed by an underwriter (Edina Realty Mortgage Buyer Advantage)
Offer 4 — A fully underwritten commitment letter, signed by an underwriter AND a certificate with a seller closing guarantee for $12,500.
Offer 4 is a powerful proposition that may just help you land your dream home. To learn more, contact your local mortgage consultant to discuss your financing options, today.
1. Edina Realty Mortgage Closing Guarantee is only available on Buyer’s Advantage-designated, conventional, FHA and VA loans approved by Prosperity Home Mortgage, LLC dba Edina Realty Mortgage in writing prior to execution of fully ratified sales contract. Edina Realty Mortgage Closing Guarantee is NOT applicable on renovation loan products, loans for the purchase of cooperative housing units, or loans involving any sort of bond, down payment assistance mortgage credit certificate, or any other municipal or housing authority program. For loans from Veterans Affairs (VA loans), acceptable appraisal must be received and approved by Edina Realty Mortgage at least 10 business days prior to closing or loan is not eligible for Guarantee. The Commitment Agreement has an expiration date. The Loan must close on or before the expiration date contained in the Commitment Agreement, unless the Borrower(s) qualifies for and is approved for an extension in writing. The Commitment Agreement issued to the Borrower(s) contains conditions that must be satisfied prior to closing. Subject to acceptable appraisal of property value at or above contract sales price. This Edina Realty Mortgage Closing Guarantee is subject to the satisfaction by the Borrower(s) of all Loan conditions identified in the Commitment Agreement as determined by and in the sole discretion of Edina Realty Mortgage. The Guarantee is not valid if either Borrower(s) or Seller terminate the purchase contract or otherwise choose not to consummate the transaction for any reason whatsoever. The Edina Realty Mortgage Closing Guarantee is invalid if there is a substantial change in the Borrower(s)’ financial condition or to the terms of either the Loan or the purchase contract between Borrower(s) and Seller.
2. Edina Realty Mortgage Buyer Advantage is not a loan approval. A Commitment Letter is based on information and documentation provided by you and a review of your credit report. The interest rate and type of mortgage used to approve you for a specified loan amount is subject to change, which may also change the terms of approval. The interest rate cannot be locked until your offer to purchase a property has been accepted. If the interest rate used for credit approval has changed, you may need to re-qualify. Information provided by you is subject to review and all other loan conditions must be met. After you have chosen a home and your offer has been accepted, final loan approval will be contingent upon obtaining an acceptable appraisal and title commitment. Additional documentation may be required.
What is XLR8?
We are delighted to introduce XLR8, a streamlined and expedited mortgage approval process designed to automatically verify borrowers’ credit, assets and income without the borrower providing any loan documentation.
Borrowers simply complete a digital loan application via our website or mobile app, and connect their bank accounts via our secure portal. We then work behind the scenes to electronically validate credit, assets and income in minutes—not hours, days or weeks!
- No more digging for old tax returns
- No more searching files for W-2’s from two years ago
- No need to print off pay stubs
- No need to copy, print or scan pages and pages of bank statements
- Most borrowers are only required to provide a Valid ID and proof of Homeowner’s Insurance to close
Advantages of XLR8:
- Minimize your loan conditions
- Simplify the mortgage process
- Close on your home faster
- Reduce last minute surprises
In a matter of minutes, we may be able to electronically validate your information and issue an XLR8 commitment letter. Contact your local mortgage consultant for more information about XLR8 today!
1. The XLR8 mortgage program is available on conventional loans guaranteed by the Federal National Mortgage Association (FNMA) only. Contact your mortgage consultant for more information.
All first mortgage products are provided by Prosperity Home Mortgage, LLC dba Edina Realty Mortgage. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance. Licensed by the Delaware State Bank Commissioner. Also licensed in Alabama, Colorado, Connecticut, District of Columbia, Florida, Georgia, Illinois, Indiana, Kansas, Maryland, Michigan, Minnesota, Missouri, Nebraska, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia, West Virginia and Wisconsin.
NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)
©2019 Prosperity Home Mortgage, LLC dba Edina Realty Mortgage. All Rights Reserved.
Buying a new home can seem overwhelming. But knowing what to expect – and having a knowledgeable team of real estate and mortgage-lending professionals to assist you – can help make finding and financing your home an exciting and rewarding experience. Here is a basic overview of the home buying process:
1. Obtain a mortgage preliminary approval before you begin house hunting.
- Learn how much home you can purchase.
- Strengthen your bargaining position with sellers.
2. Work with your real estate agent to find the right home.
- Determine your needs and create a wish list of desirable features.
- Take notes as you preview homes
3. Make a purchase offer on a home you like.
- Your real estate agent presents your offer to the seller, who will then choose to accept, counter or reject the offer.
- When the price is settled, you and the seller sign a Purchase Agreement, defining the terms of the sale.
4. Complete the loan application process.
If you have already obtained a mortgage preliminary approval, contact your lender and let them know you have a contract on a home. Your mortgage consultant will update your loan application and help you to proceed with the home financing process.
5. Have the home inspected.
If you choose to have a home inspection, hire a professional home inspector after the offer has been accepted to provide an in-depth look at the basic systems of the house, which can reveal safety hazards and give you a chance to reconsider the deal.
6. The home will be appraised.
An appraisal, required by your mortgage lender, is a formal, written estimate of the home’s current market value.
7. Obtain title insurance. (where applicable)
Title insurance guarantees the property you are purchasing is free of liens or confusion in rights of ownership, and it also insures against any losses to the property that result from defects in the title or deed.
8. Close on the property.
- A closing agent coordinates and distributes all the paperwork and funds.
- Ownership of the property is transferred.
And you become the proud owner of your new home! Our team of mortgage professionals is available to guide you every step of the way to help ensure your home buying process is a smooth one.