Financing the Purchase of a Historic Punta Gorda Home

Financing the Purchase of a Historic Punta Gorda HomePurchasing any home can come with a fair amount of requirements and steps. Purchasing a historic property may come with a few extras, including securing a mortgage loan for the purchase. If it is your dream to purchase a historic home in the charming city of Punta Gorda, you will want to make sure you are prepared in the process. 

Securing a Mortgage on a Historic Punta Gorda Home

Pre-approval is a Great First Step

When purchasing any Punta Gorda home the best first step in home shopping is a mortgage pre-approval. This helps a homebuyer to get a good picture of what a lender would be willing to lend them to purchase a home. When you are applying for pre-approval you can use this time to ask the lender about the possibilities of purchasing a historic home. A lender will walk you through what they may require as extra or special considerations when it comes to historic properties. 

Make Sure You Can Secure Insurance

Homeowner Insurance for a historic home can be more expensive as compared to newer homes. This is because of the cost of replacing materials in the home. Homes that require special replacement measurements come with an added cost and this translates into insurance premiums. A homeowner must have adequate insurance coverage to retain most mortgage loans. You want to make sure you can find insurance for the home and insurance that will be affordable when making payments on your mortgage. 

Be Prepared for Extra Documentation Requirments

In some cases, a lender may ask for documentation on a home's deed restrictions, easements, and historic designation regulations if the home is officially designated as a historic structure. There are special considerations and restrictions as to how a homeowner can maintain or improve the property when the home is officially designated as historic. 

Check out property tax relief

Any house has the same property tax responsibilities as the next in every location. Some historic houses however are eligible for a federal historic rehabilitation tax credit. Or they may be eligible for tax deductions on donated preservation easements. It is always worth looking into to see if your historic home can qualify for tax credits on both a state and federal level. Start by consulting the state historic preservation office as well as a tax professional to see if any property tax relief is available to you when you purchase a certain historic property.

Be prepared for the possibility of making other arrangements

Some hopeful Punta Gorda historic homebuyers have been surprised to discover that they need to make other arrangements to secure financial help for their home purchase. The most common scenarios where this happens include attempting to purchase a historic home through a VA or FHA loan and discovering that the house does not meet the program standards. Also finding out that an inspection has revealed major repair needs and the bank requesting evidence that the homeowner has their own funds to conduct the work. In some cases, a homeowner is hoping to secure funds through their mortgage to make repairs on the home and this may require more time and underwriting details from the lender.

If you are fortunate enough to find an amazing historic home in the downtown historic District of Punta Gorda or another area of this charming small town it is always great to be knowledgeable and prepared for the differences between purchasing one of these amazing unique properties and purchasing a traditional newer home.

If you are interested in purchasing a home in Punta Gorda I am happy to help you begin your home search. Contact me anytime with any Punta Gorda real estate needs. I am here to offer you the best service and care and help take the stress out of buying or selling a home in Punta Gorda.

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