Loan Programs
Renovation Loans
Finance the purchase of a home and the cost of its upgrades, all bundled into one convenient monthly mortgage payment.
Finance the purchase of a home and the cost of its upgrades, all bundled into one convenient monthly mortgage payment.
Build Your Dream Home
Renovation loans allow you to buy a property that needs work and finance the cost of the repairs or upgrades upfront. Instead of draining your savings or taking out high-interest credit cards, the renovation costs are amortized over the life of your mortgage.
Popular Renovation Programs
- FHA 203(k): Ideal for primary residences requiring structural or non-structural repairs.
- Fannie Mae HomeStyle: Can be used for primary residences, second homes, or investment properties.
- VA Renovation Loans: For eligible veterans wanting to purchase and upgrade a home.
- USDA Renovation: For rural properties needing repairs to meet USDA standards.
Who is Eligible?
- Homebuyers purchasing a primary residence, second home, or investment property (depending on the program, like HomeStyle vs. 203(k)).
- Borrowers meeting standard credit and income requirements for the underlying loan type (e.g., FHA, Conventional).
- Current homeowners looking to refinance and roll renovation costs into their new mortgage.
What is the Process?
- Pre-Approval: We determine your maximum loan amount based on the projected "After-Repair Value" (ARV) of the home.
- Find a Property & Contractor: You select a home and hire a licensed, approved general contractor to provide a detailed bid for the work.
- Appraisal: The appraiser reviews the contractor's bid and determines what the home will be worth after renovations are complete.
- Closing: You close on the loan. The funds for the purchase are paid out, and the renovation funds are placed into an escrow account.
- Renovation & Draws: Work begins. As milestones are reached, the lender inspects the work and releases funds (draws) to the contractor.
Is Mortgage Insurance Required?
Yes, if you put down less than 20% of the After-Repair Value (ARV). FHA 203(k) loans will require FHA mortgage insurance, while Fannie Mae HomeStyle loans will require conventional PMI.