Amid inventory and affordability concerns, homeowners are increasingly turning to home renovations to meet their housing needs.
In fact, reports indicate the within the past five years, remodeling has increased by about 30%. From 2015 through 2017, Americans spent $449.5 billion across 113 million home improvement projects.
Homebuyers often utilize renovation mortgages to finance these projects, by bundling home and repair costs to streamline the payment process.
While several lenders offer renovation mortgages, the U.S. Department of Housing and Urban Development has revealed that Homebridge Financial Services continues to lead the pack.
According to a recent HUD report, Homebridge’s retail platform and two wholesale divisions, Homebridge Wholesale and REMN Wholesale, garnered a combined total of 954 endorsements during HUD’s most recent fiscal year. This is 87% more than second highest lender and 219% more than five of the top 10 lenders.
Homebridge, which began offering renovation loans in 2011, has held this title for two consecutive years, attributing its success to a subpar market.
“One of the biggest issues in housing right now is the lack of available homes that are desirable in terms of both location and design. When a borrower can’t find a home that meets both of these needs, they tend to postpone their purchase, sometimes indefinitely,” Homebridge’s National Director of Renovation Lending Steven Marshall said.
“Homebridge’s success with renovation mortgages is in direct correlation to borrower interest, the referrals we receive from real estate professionals who are having a tough time finding buyers for less than perfect homes in their local areas, as well as the extra effort our associates put towards helping borrowers close these loans.”
Earlier this year, the company promoted Jamie Zeitz to the newly created position of renovation producing area sales manager, further expanding its renovation business throughout the Southeast region.
“Homebridge has seen overwhelming success in the renovation mortgage space because it provides mortgage loan originators with the tools and support they need to help borrowers make the most of these loans," Zeitz said.