Buy Up or Build Up with the
Amazing Renovation Loan
I
t is always exciting when in this
space I can share a truly versatile
product that could help families in our
area. This article is going to focus on a
great loan option call the “Renovation
Loan.”
In a market, such as the current
Santa Clara and San Benito counties,
where home prices are rising fast, and
inventory is low, many families like
the idea of buying up but face hurdles
in that goal.
First:
While their home may sell fast,
can they find a home to buy after
their sale?
By Jayson Stebbins
Mortgage Professional
Second:
Jayson Stebbins is a 25-year veteran
of the Mortgage Banking industry
and an Accredited Mortgage
Professional through the Mortgage
Bankers Association. He grew up
in Morgan Hill and currently lives
in Gilroy. He is the local Branch
Manager of Guild Mortgage, a
56 year old Mortgage Banking
fi rm. His offi ce is in Morgan Hill
and serves all of Santa Clara, San
Benito, and Monterey counties. You
can reach Jayson and his Team at
408-782-8800 or at jstebbins@
guildmortgage.net
Will the new price and tax base create
an affordability issue for them as they
try and get into this market?
Many industry pundits have stated
that in their opinion, 2018 will be a
year that more people tap into their
equity for home improvements. And
with the tax bill changes making a
Home Equity Line less appealing*,
what other ways can a family make
their current home more like their
dream home?
The renovation loan can work as
either a purchase or refinance. The
Renovation loan allows a family to
build the cost of home improvements
into their first mortgage, using either
a Conventional loan or an FHA loan.
Turning a garage into additional living
space? Building on to the footprint or
adding a 2nd story? Just refreshing
one or two rooms? New windows,
paint, roof, or landscaping? Adding
a pool? Yes to all these options, and
pretty much anything you can think
of for an existing home.
The loan is especially interesting in
a purchase space. Some homes are on
the market for a long time and require
“all cash” offers as they are run down,
broken down, or have significant
issues that the average home buyer
would not accept. With the renovation
loan, you can buy the property “as
is”, and finance the costs of the
remodeling into the loan after closing
with a one loan solution.
These loans have the flexibility,
interest rates, and accessibility that
homeowners need to upgrade and
update their current home. Buyers,
with a renovation loan, will be able
to get into the market below their
current budget. We are excited
for what this year will bring for
Renovation Loan clients.
* One of the reasons this loan will be more appealing is due to the tax bill changes of
2018, which exclude Home Equity Lines (HELOC) from Mortgage Interest deductions. A
renovation loan will keep improvements in the first mortgage space, making them eligible
for tax deductions.
.
Jayson
Stebbins is a licensed mortgage agent in CA for Guild Mortgage Company NMLS#38463;
Licensed by CA Disclosure:Licensed by the Department of Business Oversight under the California Resi-
dential Mortgage Lending Act. NMLS Company Unique ID 3274; Branch Unique ID 38480. The post-
ings on this editorial don’t necessarily represent the positions, strategies or opinions of Guild Mortgage
Company or its affi liates. This information is not guaranteed to be accurate and shall not be construed
as a guarantee of loan approval. All loans are subject to underwriter approval, and are subject to
change without notice. Equal Housing Lender.
22
GILROY • MORGAN HILL • SAN MARTIN
APRIL/MAY 2018
gmhtoday.com