RENOVATION LOANS
FHA 203K Rehab Loan
If buying a ‘fixer-upper’ is just your speed, the FHA has a home loan called the 203K Renovation Loan that allows you to buy your ‘diamond in the rough’, fix it up, and include all the costs in one loan.
If you own a home in need of remodeling or repair, you can refinance what you owe and build in the repair costs into one neat FHA 203K Renovation loan.
Fannie Mae Homestyle Renovation Loan
With HomeStyle, Fannie Mae gives more flexibility to meet borrowers needs and potential to save repair-contingent deals. Borrowers can obtain financing for both the purchase price of the potential home and any renovation costs, wrapped up in one mortgage loan amount. The HomeStyle Renovation Mortgage provides a convenient way for borrowers to make renovations, repairs, or improvements up to 75 percent of the as-completed value of the property with a first mortgage, rather than a second mortgage, home equity line of credit, or other costlier financing method. Whether it's a purchase, or refinance, borrowers have the option to roll renovation costs right into their mortgage.
Borrowers may use funds to purchase appliances as part of an overall remodeling project that includes substantial changes or upgrades to the rooms in which the appliances will be housed.
HomeStyle may be used to complete the final work on a newly built home when the home is at least 90% complete. The remaining improvements must be related to completing nonstructural items the original builder was unable to finish, such as flooring, cabinets, kitchen appliances, fixtures, and trim.
*All loans are subject to underwriting or investor approval. Other restrictions may apply. This is not an offer of credit or a commitment to lend. Guidelines subject to change.
