Home Buyer Loans
Home Style Renovation Program
Ready to do this? Let’s do it!
Tristan: All right here we are, in this house. Obviously, we need some updating. There’s some old, cool things here. But if I come in here, probably want some things taken care of.
They probably don’t want a heart bathtub. How can a buyer fix this property up and and roll it into the loan? What kind of programs you have?
Angelia: We have a really good one. It’s called the Home Style Loan Program. What that means is, you can come in -have a purchase price, you can have your contractor come in and give you bids for whatever you want to have updated or remodeled for your liking.
Tristan: Your choice? You decide what you want to do?
Angelia: Yep your choice. You can do kitchens, bathrooms. It has to have some value to it so that it helps your value on your appraisal.
Then what we do is we get the bids from the contractor and add that to the appraisal – we do an “as-if” appraisal. When that appraisal will come back, it says “Yes your value would be ‘this’ if you have these remodels or rehabs completed.” And then we can lend off of that amount.
Tristan: This property is right now $185,000. Let’s say you brought a contractor in here and he says, “$20,000 will get all this fixed.” So then total purchase price is $205,000. Correct?
Angelia: Yep and then we can go off of that value. We can do up to 97% loan to value – so a minimum 3% down for some borrowers.
Tristan: So, a buyer coming in would have to have 3% down cash?
Angelia: Minimum, yes.
Tristan: Up to 5% down I assume?
Angelia: Yes, you get 3% if you’re a first-time home buyer. Then 5% up to whatever you want.
Tristan: Okay sounds good! Obviously they need to be approved for the total amount as far as their income ratio, etc, etc, etc.. You gotta be pre-approved for the total amount?
Angelia: Correct. Because what we will do is, once you buy the house the seller will get paid their proceeds. And then the amount for the rehab or remodel will be set in an escrow account, where that contractor will draw from that account.
Tristan: Everything gets done by the contractor.
Angelia: Yep. And it will all be done so when you move in….it’s all ready to go. You don’t have to do the work yourself.
Tristan: This would be a great option if you want to buy this house (or any other house) and there were some updates that needed to be done or some repairs. Sounds like maybe even some foundation repairs or something as long as that appraisal worked out at the end, everything should be good.
Angelia: You can even add a garage. We’ve have some people that have houses that don’t have a garage, you could add a garage if they have the space. That adds some big value to it. Everybody needs a garage. It’s called the Home Style Rehab Program.
Tristan: Awesome! Any questions, give Angelia a call. Talk to you later! Thank you!
Angelia Dale’s Legal information:
Angelia Dale, Loan Originator, NMLS #175544
Gateway Mortgage Group
Rapid City, SD
Gateway Mortgage Group is a registered service mark of Gateway Mortgage Group, LLC. NMLS 7233. All loans subject to program guidelines and final underwriting approval. See local branch for additional terms and conditions. South Dakota Mortgage Lender License #ML.05071