Renovation loans, or construction loans, can be used for a number of projects, but almost always allow the user to customize their space or property. Anyone interested in new construction or a big renovation should look into this as a viable financing option. Keep reading to learn if these loans are right for you, and learn how you can qualify.

What Are Construction Loans?

Construction loans are short-term financing options for new real estate or renovation projects. They are used to pay for the costs of building a new house or for upgrading an existing property. Construction loans are only applicable for the time it takes to complete the project, and users only borrow what they need. These loans are distributed directly to the contractor (instead of the borrower) in segments called “draws.” Draws are marked as certain elements of the project are completed, such as the foundation being poured or the frame being built. 

The main appeal of construction loans is that they enable homebuyers or investors to build a new property; though, the freedom to customize a property does come at a cost. For example, construction loans are known to have higher than average interest rates. The structure is typically set up to protect lenders who trust that a project will be completed correctly, and that it will be worth a certain amount when done. Homeowners should not rule this option out, however, because there are a number of perks to this form of financing. 

What Can A Construction Loan Be Used For?

A construction loan can be used for a number of projects, depending on your lenders’ requirements and terms of agreement. Here are a few of the ways to utilize an investment property construction loan:

• Purchasing raw land

• Pouring foundation

• Building an addition to a property

• Framing and finishing a house

• Building sheds or other structures

• Adding a garage

What’s The Difference Between A Construction Loan And A Home Loan?

A construction loan and a home loan are different in terms of what they can be used for; and as such, the approval requirements will be slightly different for each. A construction loan is used to build new structures or renovate existing ones, while a home loan is just a traditional mortgage. Both types of financing will require a credit check and other financial information, but a construction loan will also require the project plans to be approved before the loan is issued. 

Additionally, construction loans can only be used for the duration of the project. Home loans, on the other hand, are issued for a set period of time until they are paid off. Borrowers who rely on construction loans will typically refinance their property after the project is completed, and enter a more traditional loan. To do so, homeowners will go through a property inspection and appraisal. 

What’s The Difference Between A Construction Loan And A Renovation Loan?

The difference between construction loans and renovation loans lies in the type of project. Construction loans are used for new properties with definitive project plans. Those who use construction loans will also typically transition into a regular mortgage at the end of the construction project. In contrast, renovation loans for investors are used to purchase fixer uppers or to renovate existing properties. These loans can be used for both cosmetic and structural fixes, like insulating a house or upgrading a kitchen.

Can You Get a Construction Loan For An Investment Property?

Yes. You can get a construction loan for an investment property, as long as your project plans and finances meet designated lender requirements. Unlike some home loans, there is no process stating that a construction loan must be applied to a primary residence. In fact, construction loans can be a great option for financing an investment property for a number of reasons. Most notably, real estate investors likely have experience working with contractors and supervising renovation projects already. Therefore, they may be well suited to oversee the construction of a new property. 

There are also renovation loans for investment property that can be obtained by following a similar approval process. Investors interested in a renovation construction loan will find that the loan is distributed based on the after repair value of the property in question. This is where your investor tool kit will come in handy. Rely on a good rental property calculator and contractor when determining whether or not a renovation loan is the right move for a specific project. 

How To Qualify For A Construction Loan

To qualify for a construction loan, borrowers must meet a number of financial requirements in addition to having their project plans approved. To begin, lenders will typically review your debt-to-income ratio and credit. While the specific requirements vary based on your lender, many ask for a credit score of 650 or more. Borrowers must also have a down payment when setting up a construction loan, which should usually be between 20 and 30 percent. Make sure you shop around when searching for a lender; there are numerous options available for obtaining a construction loan and each will come with different requirements. 

In order to get the final approval for a construction or renovation loan, you must also submit the construction plans for the project. Lenders will want to see detailed plans for the property, and a team of qualified builders attached to the project. It is important to know that while you do need finished plans for the final loan approval, you can get preapproved for a construction loan before buying a property. 

Summary

The idea of customizing a property from start to finish may seem impossible, both for homeowners and investors. However, this is not the case. With financing options like construction and renovation loans, building a new property does not have to be a distant dream. While there are approval requirements to this form of financing, it can open new doors to anyone interested purchasing raw land or fixer uppers. Consider a construction or renovation loan next time you plan a project, it might lead to amazing results. 

Photo by Curtis Adams from Pexels

A variety of complications can come into play for today’s property owners. Many of these issues involve title — property rights conferring legal ownership. While title is often straightforward, it may prove difficult to establish in select circumstances. In such situations, a quiet title action may be the most effective solution available.

What Are Quiet Title Actions?

It is critical that homeowners be fully aware of their status as titleholders. In most cases, title is obtained through sole or shared ownership, although it can also sometimes be granted through trusts. Regardless of how it is obtained, title should ideally be clean and clear — completely free of liens, levies or any concerns that might call legal ownership into question.

In select cases, title may be secured via a civil process known as a quiet title action. This procedure is often initiated by the property owner. The goal? To officially establish a party’s title to personal or real property in hopes of ‘quieting’ or essentially ending any challenges to the title in question. 

Quiet title actions occur under a variety of circumstances. Many take place in the midst of disputes with mortgage lenders. Others may be prompted by cases of adverse possession, in which neighbors or even trespassers attempt to gain claim to property that they do not currently own. State regulations vary regarding who is allowed to pursue quiet title actions and how the process takes place. 

Key Considerations For Pursuing Quiet Title Actions

The primary downside of quiet title actions is that they cannot always be relied upon to clear up all claim issues. Also, while quiet title actions may sometimes seem like a non-adversarial approach, they can quickly escalate disputes that might have otherwise been downplayed via alternative legal solutions. For this reason, they must be undertaken only when property owners and their legal counsel determine that other options will prove ineffective for clearing up title conflicts. 

Those who choose to move forward with quiet title actions should closely examine the circumstances surrounding current disputes to determine how this approach can ultimately lead to clean and clear title. Likewise, regional differences should be analyzed, as the process can look dramatically different from one state to the next. Patience is critical; as with any legal action involving property, this process can prove time-consuming. 

When title is called into question, it is critical that property owners respond in a proactive manner. Depending on the situation, this could mean pursuing a quiet title action. Weigh the risks and benefits carefully to determine whether this is the appropriate course of action. Depending on the situation, this approach could prove valuable both for legal purposes and for providing personal peace of mind.

By Sherri Rice

Photo by Nile via Pixabay

Perennials are beautiful plants that bloom and breathe new life into any surrounding. Unlike annuals, they don’t have to be ripped up and replanted each and every spring. Here are a few lovely perennial flowers that’ll bring life to your home year after year, with very little maintenance!

Valerian

Valerian is a plant better suited in garden beds since it can grow up to five or six feet tall. It has fragrant flowers that are highly fragrant and definitely pleasing to the nose. It has beautiful little flowers that sprout atom thin stems ranging from white to pale pink.

Peonies

These are great for the garden beds or larger container planters, and have incredible longevity. They are spectacular for putting on a good show, with their large four to six-inch fragrant flowers and glossy green foliage. With full sun and good soil, peonies will make your garden or porch the talk of the neighborhood.

Chocolate Cosmos

Another lovely showstopper for almost anywhere in your garden is the deep and stunning Chocolate Cosmos. At up to 3 feet tall and around a foot wide, these flowers are great for garden beds, containers, borders, and just about anywhere else you can think to put a plant. They, as their name implies, have a strong aroma of dark chocolate, and deep, nearly-black centers. Chocolate cosmos are always a hit with garden enthusiasts!

These, along with many others, are excellent options for low-maintenance beauty that will last you all year. Perennial flowers are also an excellent option to help save money overall on your gardening costs since they don’t need to be repurchased every season or every year.

Hire the right help.  Buying a home for the first time is not the time to go it alone. Hire a professional real estate agent that represents buyers. You need someone in your corner during negotiations and the contract process so that necessary paperwork gets completed and a seller’s potential lack of disclosures doesn’t slip by you. Your agent can refer a home inspector to find out everything that might need repairs. Then they can negotiate for you to get the price reduced or the item fixed during the closing process.

If you follow these suggestions, when your agent finds the perfect home, you’ll be ready to take the exhilarating leap to purchase your first home.

Did you know people are generally happier when they have something to nurture and tend to in life? That’s right. Taking care of plants can make you a happier person and improves your sense of well-being, which in and of itself might be motivation enough to start an indoor garden. If you need more proof that now is the time to try indoor gardening, consider the following benefits of the practice:

You likely already know the biological breakdown of the way plants produce oxygen. We won’t get too deep into the weeds with that. However, it’s worth noting that plants effectively absorb trichloroethylene, formaldehyde and benzene, while producing fresh, life-sustaining oxygen. This means your air quality will improve simply by having plants growing indoors.

Another important benefit of an indoor garden is the food it can produce. You can grow herbs and vegetables, which will be right on hand at any point. Let’s face it, veggies and herbs can get pricey when buying them at the store or farmer’s market. If you have your own supply, you will not only have fresh, succulent foods at your fingertips, but you will save money as well. It’s also pretty neat to pull a leaf off a nearby herb plant to add to your pasta sauce or to spice up another dish you are working on. There is no better taste than fresh herbs in a homemade dish.

Having a richly producing indoor garden can be a bit of a learning experience. After all, different plants thrive with varying combinations of water and indirect or direct sunlight. This means to successfully get your plants to grow, you have to learn a bit about what they require to thrive, which is an educational process and a fun challenge.

Your home should be a sanctuary of sorts, blocking out all outside noises and stresses. What if your house itself is loud, though? How do you create the zen environment you want if your house is full of noise? An indoor garden is one solution. Why, you ask? Well, it’s because studies have proven that plant’s leaves effectively absorb, reflect and diffract noise. This means a noisy space becomes less clamorous and more peaceful, simply from having plants inside.

Finally, having an indoor garden is pleasant to look at. Depending on the type of garden you have, you might enjoy plants that flower or bloom in attractive manners. Even if you plants are all green, they can be pretty to look at and provide interest to a space. For example, an indoor garden is a great way to furnish a sunroom or patio or to add some life to a dreary indoor room. 

Indoor gardens have many benefits as you have seen outlined above. If you have ever considered trying your hand at indoor gardening, use this information as motivation to give it a whirl!

Usually, it is beneficial to begin a home search with a mortgage at your disposal. If you get pre-approved for a mortgage, you will know how much you can spend on a house. Then, you can search for houses that won’t force you to exceed your budget.

To obtain a mortgage, you should meet with a variety of banks and credit unions. These financial institutions can teach you everything you need to know about home financing. Plus, they can help you make an informed mortgage selection.

With a real estate agent at your side, you should have no trouble performing a successful home search.

A real estate agent is devoted to homebuyers’ success, and as such, will do what it takes to help you achieve your desired results. For instance, if you want to buy an affordable house in a small town, a real estate agent will make it simple for you to do just that. Or, if you want to purchase a home near your office in the city, a real estate agent will craft a custom homebuying plan so you can accomplish your goal.

Furthermore, a real estate agent takes the guesswork out of buying a house. If you ever have homebuying concerns or questions, a real estate agent will respond to them – without exception.

Want to enjoy a fast, stress-free homebuying experience? Take advantage of the aforementioned tips, and you may be better equipped than ever before to seamlessly navigate the homebuying journey.

The Down Payment

Special Loans

• Doing a percentage of the work yourself;
• Living on the property; and
• Completing a portion of the work within a specific amount of time.

Know What Has to Be Done