3 Ways to Finance Your Dream Home in A Competitive Market

Buying a home in a seller’s market can be frustrating. With very little inventory available, buyers are struggling to find “the one”. But that doesn’t mean you should settle for anything less than the home of your dreams.

If you’re looking to buy a home anytime soon, you’ll need a lot of patience and a willingness to move fast. However, the true key to unlocking your homeownership dreams right now could be none other than creativity. And there’s never been a better time to think outside the box.

The Wilpower Team at Silverton Mortgage offers many alternatives to a traditional real estate transaction. Read along to see which option could be best for you.

Option 1: Renovate Your Home with a Home Improvement Loan

If your current home is already in the location where you want to be, but it could benefit from serious renovations, a Construction One-Time Close Home Improvement Loan could be a good option. Whether you’re wanting to add a second story, gut the interior, build an addition — or all the above — a home improvement loan may be for you. 

A few things you should know about a home improvement loan are:

  • A Home Improvement Loan is designed for borrowers who want to make improvements to a home they are purchasing or a home they already own
  • The loan is made directly to you, the borrower, not the builder
  • Because there’s ONE loan, there will only be ONE closing

Director of Construction, Rick Scott, explains, “Renovating a home can be a very confusing and an intricate undertaking since it’s a task many consumers have never done before and are not familiar with. Our Silverton Construction Specialists are trained to make sure the borrower and builder are educated on each step of the process and have an understanding of how the total transaction will flow. At Silverton, our goal is to make a renovation as stressfree as possible for the borrower.” 

Option 2: Cash-Out Refinance

If your home doesn’t need a drastic overhaul but could benefit from repairs or other improvements, then a cash-out refinance may be ideal. In most cases, with this type of loan, you replace your existing mortgage with a new one in an amount up to the fair market value of your home. After paying off your original mortgage, the difference can be used for home improvements and other renovation projects. Essentially, you’re cashing out your home’s equity in exchange for cash on hand.

Cash-out refinancing offers homeowners several advantages, including the following: 

  • Using a cash-out refinance to put money back into your home can be a sound investment because it can help you rebuild equity
  • Strategic home renovation projects can add to the value of your home
  • When you refinance, there is a possibility you could get a lower interest rate resulting in lower monthly mortgage payments

Option 3: Silverton Secure+ for New Construction

With very little inventory available, you may want to consider purchasing a new construction home from a builder or building your own new home. Our Silverton Construction-Permanent (CP) Loan allows all financing (including land acquisition) to happen under one loan for the client. That means one set of documents and one closing, which will save you time and money.

How our Construction-Permanent Loan works:

  • The loan is closed in the buyer’s name with interest-only payments during the construction phase
  • The construction phase of the loan is designated for a specific amount of time
  • Upon the completion of the home, along with meeting the conversion requirements, the loan then converts to the permanent phase

Property types that are eligible for Construction-Permanent Financing include:

  • Single-Family
  • Detached Primary Residences
  • One-Unit

Project types that are eligible for Construction-Permanent Financing include:

  • New Construction
  • Home Improvements/Renovations

Considering a renovation or new construction? With us, you have options.

Whatever way you decide to navigate the current housing market, Silverton Mortgage has your back with financing options that work for you. Whether you decide to stay put and improve your current home or build a new one, let us help you get there with a stress-free mortgage experience. 

Contact one of our Wipower Team professional loan originators today! 

Disclaimer: All loans are subject to credit approval.

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