Program helps to renovate fixer-uppers

Purchasing a fixer-upper in need of renovation can be a smart investment in the Las Vegas Valley, where home prices are rising, if two things are in play: You can buy the property for under market value, and you have a well-thought-out renovation plan with the right projects that increase the home’s equity. All of this requires money.

This spring, securing a mortgage that can finance the purchase and renovation of the home, finding a local Realtor experienced in locating non-picture-perfect homes with potential and locating professionals with the know-how to plan and execute a renovation became simpler with the introduction of the Homestyle Renovation Redevelopment Program.

“Purchasing homes that are older with out-of-date designs or in need of repair can be a great option in our current real estate market as prices for resale and brand-new homes continue to increase. These are the lower-priced homes where you can build equity by making the right kind of improvements. These are the homes purchased by home flippers who renovate them and then resell them for a profit. These are the homes priced below market value and need new owners,” said Michael Sweeney of Platinum Home Mortgage Group in Las Vegas, which introduced the Homestyle Renovation Redevelopment Program in March.

“The Homestyle Renovation Redevelopment Program can help home shoppers who can see a home’s potential and are not afraid of taking on a renovation project while working with approved contractors who oversee the project.”

The program’s multiprong approach helps streamline the home purchase-renovation process and provides assistance in the home search, renovation planning and execution and a 30-year, fixed-rate loan up to $453,100 to:

• Purchase a home, including those that some mortgage lenders do not finance due to the home’s condition and “cash-only” sales.

• Renovate that home, using a portion of the loan set aside in a separate escrow account and a referred general contractor.

“Your mortgage can finance many different types of home improvements. Some people choose minor repairs, new flooring, kitchen renovations and swimming pool installations, while others make significant renovations that take the home to its studs and include electrical, structural, air-conditioning and heating units, plumbing, roofing and other improvements,” Sweeney said.

The program is available for home purchases by owner-occupants, vacation homeowners and investors, as well as to homeowners wanting to refinance and remodel their current homes under one fixed-rate mortgage.

“Reviewing your financial situation and the amount of your down payment are among the first steps in determining the amount of a mortgage that you may qualify for. You then work with one of our Realtor partners in your home search who help you review the renovation options of different homes, and you then meet with one of our contractors who can offer an idea of how much different renovations may cost,” Sweeney explained.

Current Realtor partners include Robin Smith of Smith Team at Keller Williams Las Vegas, Blake Guinn of Realty One Group and Brian Frabbiele of Better Life Realty, all of whom can assist in selling a client’s current home as well.

Developing a well-thought-out renovation plan and budget while reviewing the pros and cons of different homes during the home search phase is important. The program offers a design center where clients can review different design possibilities, materials, finishes and options.

“You should completely understand all of your renovation options and their costs and develop a solid renovation plan before you decide to buy a home, because the choices you make impact your mortgage,” Sweeney said.

With the proposed renovation plan and a review of the home shopper’s personal financial situation, Platinum Home Mortgage Corp., NMLS NO. 103615, can determine if the home shopper qualifies for the mortgage amount required for the purchase and renovation, or for a refinance mortgage with renovation. For additional information, visit vegasrenovationloan.com or call 702-664-6161.