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5 Common Myths about South Carolina Home Renovation Loan Features

5 Common Myths about South Carolina Home Renovation Loan Features

South Carolina renovation loans allow home buyers to turn a house with solid bones into a home with all the special features and characteristics in the dream home they desire.

This type of mortgage loan is perfect for buyers who want (or need) financing to make repairs, additions or updates to a newly purchased house. A home renovation loan is a financing vehicle that combines the purchase price of a house with an anticipated cost of renovations into a single, typically low-rate, primary mortgage loan.

Because renovation loans do not get as much publicity as a home equity line of credit or traditional mortgage packages, there is some confusion about the benefits and lending requirements.

Here are five common myths about home renovation loans.

Myth 1: Interest rates for renovation loans are higher than traditional mortgage loan rates.

  • Actually, interest rates for South Carolina renovation loans tend to be lower than traditional mortgage rates.

Myth 2: You must have a superior credit rating to qualify for a renovation loan in South Carolina.

  • Unlike a new construction loan that usually requires an excellent credit score to secure, many people with a score in the mid-600s can qualify for this type of loan.

Myth 3: Only essential repairs are eligible for renovation loans.

  • You can update the roofing and plumbing system, install replacement windows, add a raised garden or just about anything else you can think of with very few exceptions with a Midland Mortgage House 2 Home Loan.

Myth 4: Condos and townhouses aren't eligible for reno loans.

  • Condominiums, townhouses and other attached dwellings may be eligible for certain renovation loans in South Carolina.

Myth 5: Property owners must live in the home they want to rehab.

  • Unless you're applying for an 203k (or similar) loan, the loan doesn't have to be for a primary residence or an owner-occupied investment property.

Learn more about the Midland Mortgage House 2 Home Loan Program. Dial (803) 765-1680 and speak to a Midland Mortgage representative in Columbia, SC.

Posted Jul 25, 2019 by Midland Mortgage Corporation