Low Inventory Real Estate Market
If you are like me, you live in a real estate market with very low inventory. What happens when you need more room, your kitchen is outdated, or you really want a swimming pool and you can’t find a house on the market that fits your needs? Or, maybe with the rising interest rates you found a great house but now the higher interest rates put it out of reach.
If you currently own your home and your market has appreciated since you purchased, chances are you have equity. A great option is a home equity loan. There are many things you can do to improve your home or remodel to fit your current needs or desires. You might want to add a patio to give you more outdoor living space. You may want to add that swimming pool you’ve always wanted. Or you just might need a new roof.
You may have heard about a home equity loan, but another option is a home renovation loan. There are FHA, VA, and conventional products. In a nutshell, these loans will allow you to renovate your home by lending on the improved value, not the current value. They can be a bit more complicated but if you have a loan officer and mortgage company that knows how to navigate the process, it can be a wonderful solution. Home renovation loans are great for those larger projects where you may be gutting kitchens and bathrooms or adding square footage.
Of course, as a Realtor, I would hope we could find a house for you to buy that would fit your needs and be within budget, but it is not always possible, especially in a price range that is very popular. I have great vendors I work with that I recommend to clients for both types of loans. In fact, most of them can handle loans out of state so feel free to reach out if you can’t find your dream home but think you could make your current home work for a few more years with a little love. I am happy to refer you to professionals that can give you the hard facts about these loans and how they may work for you.
Michelle Froedge is a residential Realtor and Principal Broker in the Greater Nashville and Williamson County areas of Tennessee. “Mom” to four-legged fur baby, Tyler, Auntie to Zelamie, she is a vegetarian and sings in her spare time. Michelle has lived in Nashville and Franklin since 1997 and has been selling homes since 2004.