Package Loan – The Benefits and Drawbacks of Opting for a Package Loan

Package Loan – The Benefits and Drawbacks of Opting for a Package Loan

If you are looking to obtain an excellent deal on a home, chances are you will need to look at houses that are in less than perfect shape. These homes offer incredible opportunity at prices that are a steal—if you can fix them up. Part of being able to do that is having the skill and know how to go it alone or having a team you can trust. The other part? Being able to afford the repairs.

With a typical mortgage loan [link to FA], the lender will only give you what you need to purchase the home—no more. That means that you will need to secure a second loan to repair, remodel, and furnish the house or you will need to come up with the funds on your own. When all the costs add up, it can price you out of owning a home. One way to get around this is to opt for a package loan.

What is a Package Loan?

When you take out a package loan, you receive fund to cover both the real estate purchased and the personal property which will be used to repair, remodel, or furnish the property. The money can be used for a wide variety of things—new flooring, a brand new kitchen, curtains, new light fixtures, and couches to name a few.

When you take out a package loan, it will often come with a credit card for the lending institution and checking account. This allows you to keep all of your financial needs bundled into one “package”.

Why Should you Consider a Package Loan?

If your home is anything less than turn key, you will need extra money to get it to your standards. Even if it is turn key, chances are you want to give it your own special touch. Package loans in Canada make this possible without having to go through the hassle of applying for two separate loans. Professional package loans will even give you the option to build your own package, selecting from a buffet of options to get the perfect housing loan package for you.

If you already have a mortgage taken out on your home but would like to enjoy some of the benefits of a package loan, there are modification packages available to you, such as the Bank of America loan modification package.

How to Obtain a Package Loan

To obtain a package loan or get a modification package, simply contact a lender or mortgage broker, such as iMortgage Solutions to learn more about what is available to you. Let them know that you are looking for a package loan, how much you feel you need, and what terms you are hoping for. They will then be able to find the deal that works best for you.

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