Home Renovation Loan Options
Are you in the market to purchase a foreclosure that needs rehabilitation, either minor or extensive? Have you found your dream home in the perfect location, selling at a reduced price because it needs a new kitchen or roof?
Perhaps you’re interested in remodeling your current home or adding a room to accommodate a growing family. Or, you may want to improve the energy efficiency of your residence or the home you want to purchase.
Whatever your scenario – purchase or refinance – we have a loan for you! Several options are available, both government insured and conventional, which will finance the value of the home plus the cost of renovation.
How to purchase a home and finance the rehab when you don’t have the cash in pocket...
Rehab or “renovation” loans are programs for designed for homeowners or buyers who need to finance the cost of improvements with a new loan. These loans may be the answer to turning a “fixer-upper” into a dream home!
Conventional and FHA Renovation mortgages include the purchase price plus the cost of improvements the borrower is either required or chooses to make. They provide the option to obtain a new loan and complete repairs and upgrades in a single step, and without a large cash commitment.
FHA’s 203(k) Rehab Loan is a popular program, insured by the government and designed for borrowers who want to purchase a new home that needs repair, or refinance an existing home.
Two types of FHA 203(k) loans:
- The Streamlined 203(k) loan allows the borrower to make minor cosmetic changes to a property, up to $35,000.
- The Standard FHA 203(k) loan allows substantial structural improvements, repairs, and remodeling. You can even build a new home with this loan!
Advantages of FHA 203(k) loans:
- A single loan finances the purchase (or refinance) plus repairs
- Low cash-out-of pocket commitment
- Low interest rates
- Great property deals
Use your home loan to create a more “green,” energy efficient home!
Energy Efficient Mortgages (EEMs) and Energy Improvement Mortgages (EIMs) are available for both purchase and refinance and are offered by FHA, VA, Fannie Mae and Freddie Mac. These home loans allow borrowers to finance cost-effective, energy-saving measures as part of a single mortgage.
Call us today for more information about Renovation loans and Energy Efficient Mortgages. Your Mortgage Professional can help you with these and other smart, cost-effective home loan choices. Call us, today!