Issue link: http://digital.nexsitepublishing.com/i/731142
D eciding whether to remodel or build a home can be challenging. Determining how to pay for it can be even more so! When it comes to fi nancing your dream home, knowing all your options early in the process can signifi cantly reduce your stress. Let's examine several fi nancing options available to homeowners today. R EMODEL AND RENOVATION If you are updating a kitchen or bath, building an addition, or purchasing a home that you will renovate, there are several fi nancing options available. If you currently own a home, you may qualify for a home equity line of credit. is is a convenient way to pay for smaller improvements. For larger projects such as an addition or a major home renovation, consider using a renovation loan. ese loans combine the purchase or refi nance of the home, plus the renovation costs. Borrowers typically have six to nine months to complete the renovation. Interest-rate risk is avoided because the interest rate is fi xed at the beginning, and the single-loan structure eliminates the need for multiple loans and costs. For some borrowers, the fi nancing may be based off the value of the newly remodeled home. According to the NKBA, $121.7 billion will be expended on remodeling projects this year, as stated in its report, compiled by The Farnsworth Group of Indianapolis. BUILD 18 HomeMatters FALL 2016 mbaks.com