Renovation Loans

Turn That Fixer-Upper Into Your Happily Ever After

Did you know you can finance the cost of home improvements into your mortgage? Eliminate the need for large out-of-pocket renovation costs and simplify the process with one application and one mortgage payment. You’ll be able to borrow based on the expected value of the upgraded home, which may be the answer if you’re having difficulty getting approved for a loan on a house needing repairs. Theresa offers a variety of renovation loan options and can help you choose the best fit for your needs. A renovation loan might also be the answer if you’re having difficulty getting approved on a home because it needs some repairs.

Benefits of a Renovation Home Loan

• The ability to borrow more: When compared to a Conventional mortgage, a renovation loan will allow you to borrow based on the expected value of the upgraded home.

• The opportunity to restore a home: You can renovate an older home, which often has charm and features that new homes don’t.

• Simplify the process: Taking out a renovation loan allows you to have one application and one mortgage payment, instead of worrying about multiple payments.

• You may qualify for a larger tax deduction: Since you are borrowing only one mortgage, the interest, including the cost for the renovation, may be tax deductible*.

*Not tax advice; homebuyers should consult with their tax advisor.

Fannie Mae Homestyle®

Your Dream Home Awaits with the Fannie Mae Homestyle Renovation Loan

In love with the charm of an older home, but can’t afford to restore it?

Don’t stress! You can finance the cost of home improvements into your mortgage. Eliminate the need for large out-of-pocket renovation costs and simplify the process with one application and one mortgage payment. Some home renovation projects even increase your property value by a greater amount than what you spend on renovations!

Benefits

• Cover the cost of your home and the repairs with one first mortgage

• Owner occupied, second homes, and investment homes are eligible

• Minimum 5% downpayment on primary residence purchases and refinances

• You may qualify for a larger tax deduction (since you are borrowing only one mortgage, the cost for renovation, may be tax deductible).*

• In some cases it may be possible to borrow enough to cover your mortgage payment (including principal and interest, taxes and insurance) for up to six months, freeing up funds for alternative housing until move-in.

• This program has a large list of eligible improvements, including: finishing a basement, large landscaping improvements, swimming pools, room remodels, structural repairs, and much more!

*Not tax advice; homebuyers should consult with their tax advisor.

Ready to learn more about renovation? I’d love to touch base – call me today!

If you’re having a home built by a “production builder” (large company builders that build on speculation are good examples), the builder will have arranged for the construction financing. As the buyer, however, you’ll need to have a “full credit underwrite and approval” for your loan that pays off the builder’s construction loan when the home is completed.

Understandably, builders want that full credit file underwrite to assure you are approved to close the purchase of the home they build for you. This protects them from a “sale fail” and being left with a home that was tailored specifically to you.

Sometimes a builder will suggest you use their lender, but under no circumstances are you required to. Quite often they will have loan packages that look attractive, but when analyzed, actually cost you money in the short and long term. Always review that loan information with another lender to make sure there are no veiled costs to you.

Take-out loans can be one of any of the following programs: Conforming, FHA, USDA, Jumbo or Portfolio.

Remember: The loan type you choose should be based on your comfort level with your current and future financial situation.