The dream of homeownership can become a reality, even if the property you desire needs repairs or upgrades. Renovation loans are designed to transform distressed properties into ideal homes, offering a practical solution for both buyers and current homeowners looking to upgrade their residence.
What is a Renovation Loan?
This type of loan allows buyers and homeowners to finance both the purchase or rehabilitation of a home in a single financial package. It’s a powerful tool that combines the necessary funding for acquiring the property and renovation costs into one loan, with a single closing and one monthly payment.
Additionally, it’s an excellent alternative for those who wish to enhance their current home instead of purchasing a new one, providing flexibility and convenience in the process.
Program Highlights
- Finances both the purchase or refinance and the home’s rehabilitation.
- Supports different levels of projects: minor repairs, moderate renovations, and large-scale remodels.
- Allows you to choose your own eligible contractor for the project.
Financing Eligibility
This program is accessible to a variety of homeowners and buyers, offering multiple financing options, including Conventional, FHA, and VA loans.
Maximum LTVs (Loan-to-Value):
- FHA 203(k) Limited and Standard: Up to 96.5%.
- CHOICEReno eXPress and "Easy Path" Renovation: Between 95% and 97%.
- 1st Home Reno: Up to 97%.
- VA Renovation: Up to 100%.
Minimum Credit Scores:
- Conventional: 580.
- FHA: 620.
- VA: 580.
Eligible Terms
- FHA 203(k) Limited and Standard: Fixed terms of 30 and 15 years.
- CHOICEReno eXPress and "Easy Path" Renovation: Fixed terms of 30 and 15 years.
- 1st Home Reno: Fixed terms of 30 and 15 years.
- VA Renovation: Fixed terms of 30 and 15 years, financing up to $1 million.
Eligible Property Types
The program includes a variety of residential properties:
- Single-family attached or detached homes (SFRs).
- Planned Unit Developments, both attached or detached (PUDs).
- 2- to 4-unit properties.
- HUD REO properties.
- FHA-approved condominiums, including individual units in buildings.
- Manufactured homes meeting specific requirements.
Why Choose a Renovation Loan?
Renovation loans not only simplify the financing process but also open up new opportunities to take advantage of properties that might otherwise be overlooked by traditional buyers. Whether you’re buying your first home or improving the one you already own, this program allows you to positively transform your homeownership experience.
Turn your dream home into a reality with a Renovation Loan! Contact us for more information and start planning the transformation of your home today.