This content is provided by our sponsor, and neither is written by nor provides endorsement from ICBA.
Older homes have charm and character, but they also come with their fair share of problems for both homeowners and communities. With the median age of owner-occupied homes at 37 years and still climbing, it’s becoming increasingly clear that aging housing stock is both pervasive and has tentacles reaching into other issues, such as the affordable housing shortage, energy conservation and natural disaster preparedness. A widespread renovation boom, spurred on by new financing solutions, could be part of the answer.
Renovation financing alternatives and lender opportunities
Many options for financing renovations ignore a large segment of current and potential homeowners—ironically those most likely to buy or live in aging homes, such as the elderly, low-to-middle income and first-time homebuyers in urban and rural areas. Also, as more American families choose multigenerational living arrangements—where at least two adult generations or grandparents and grandchildren younger than 25 live under one roof—renovation financing offers opportunities to custom fit homes for this borrower segment.
Lenders could have a far-reaching impact on this and other housing challenges simply by educating homebuyers on new renovation financing alternatives that make home renovation possible for a broader segment of homeowners.