Renovation

Renovation

How Do Home Renovation Loans Work?

If you’re buying a home that needs repairs, there are multiple loan options available. How a home renovation loan works will depend on the type of financing you decide to apply for. Popular home renovation loan options include the following programs:

• Fannie Mae HomeStyle
• FHA 203 (k) Standard
• FHA 203 (k) Limited 
• Jumbo Renovation
• USDA Home Repair Loan 

If you can dream it, you can also find ways to finance it.  Here’s how it usually goes: You buy a fixer upper for a great price with a vision of how you’re going to put some sweat equity into it and transform it into the home of your dreams. This of course means you have to find the time to do the work (goodbye evenings and weekends), ask for help if you aren’t a builder or at least handy with tools, find the finances to pay for it (credit cards, store credit, extra cash, home equity loan), and keep the excitement of your dream alive throughout the whole ordeal. Or you could get a renovation mortgage. This option allows you to get the funds needed to buy the property AND the funds you need to make the renovations/repairs on your house. And it’s all rolled up into one mortgage with affordable monthly payments. Just as important, you can pay for a professional to do the work and to get it done in a timely manner.  Talk to our Home Loan Experts when you’re ready to plan your remodeling or renovation project!