WASHINGTON – As homes age, more homeowners are looking to remodeling to spruce up their properties. Of the nation’s stock of 137 million units, nearly 80% are at least 20 years old, and 40% are at least 50 years old.
Freddie Mac says its new mortgage product will help homebuyers or homeowners finance or refinance fixer-uppers. Eligible buyers will be able to finance the purchase of their home and the cost of renovations into a single-close mortgage.
“Research indicates a large number of older homes need repair and renovation, either to meet the needs of current owners or as a viable option for new home buyers,” says Danny Gardner, Freddie Mac’s senior vice president of single-family affordable lending and access to credit. “The ‘ChoiceRenovation’ solution gives borrowers the opportunity to make improvements, renovations and upgrades to a home using a purchase or no cash-out refinance loan that will be eligible for sale to Freddie Mac. This provides the borrower with a convenient cost-saving option for financing renovations.”
Borrowers can also use the ChoiceRenovation mortgage to renovate and repair a property that has been damaged in a natural disaster or for renovations that will help the borrower prevent damage from a future disaster, such as storm surge barriers, foundation retrofitting, or retaining walls.
Source: Freddie Mac © Copyright 2019 INFORMATION INC., Bethesda, MD (301) 215-4688