Managing a renovation can be challenging especially when unexpected costs arise, or you opt to expand the scope of the project. If you have, or are expected to, exceed your initial budget, renovation financing may be a solution.
What is a Renovation Loan?
Whether opting to update your existing home or interested in purchasing a fixer-upper, a renovation loan provides you with the option to finance home improvements for a property. There are a variety of renovation loan programs including the Standard and Limited 203K FHA renovation loan, Fannie Mae HomeStyle® renovation loan, and Freddie Mac CHOICERenovation loan program.
What Renovation Financing Offers:
- Access to funds with no minimum or maximum amounts.
- Can be used for a primary or secondary home or investment program.
- Variety of project usage from minor home rehabilitations to major, structural needs.
Project Ideas:
Luxury Improvements: Install an outdoor kitchen, swimming pool or hardscape patio or gain more square footage through a sunroom or home addition.
Home Maintenance Systems: Upgrade costly systems such as HVAC, plumbing, electrical, and septic.
Accessibility Modifications: Enhance mobility in the home by widening doorways, adjusting surface heights, and installing accessibility ramps or grab bars.
Energy Enhancements: Consider energy-efficient appliances or strengthen insulation by sealing gaps around doors and windows.
Essential Repairs: Stabilize the home’s integrity and safety by tackling crucial repairs such as leaky roofs or structural foundation work.
Renovation Loan Programs We Offer:
FHA 203K Renovation Loan Program
A FHA 203(K) renovation loan is a government loan program backed by the Federal Housing Administration (FHA) and are offered in 2 different loan types to best fit your renovation needs including the Standard 203(K) loan and the Limited 203(K) loan.
A Standard 203(K) loan is intended for homes needing major renovations, structural repairs or other changes exceeding $35,000 versus a Limited 203(K) loan is intended for simple, non-structural repairs and renovations up to $35,000.
Fannie Mae HomeStyle® Renovation Loan Program
The Fannie Mae HomeStyle® renovation loan can be used for a primary or secondary home or investment property. It allows for the financing of basic renovations and luxury items including swimming pools, detached garages, and gazebos.
Freddie Mac CHOICERenovation Loan Program
The Freddie Mac CHOICERenovation loan can also be used for the financing of basic renovations and luxury items including swimming pools, detached garages, and gazebos. Pool projects consisting of only pool installation, decking and/or any fencing or netting immediately surrounding the pool may be eligible for reduced documentation.
Renovation financing can provide an affordable solution without halting the process of the project. Our team takes pride in having a local, dedicated renovation department that works intimately with contractors and clients from start to finish. Interested in learning more about the process? Let’s schedule a time to chat.