Renovation Lending

WHAT IS A RENOVATION LOAN?

With a renovation loan a homebuyer finances both the purchase price of the house and the cost for repairs. The loan is based on the after-improved appraised value of the property.

  • One application, one approval process, one loan closing and one monthly payment.

When do the Renovation get completed?

  • All work is completed after closing by a borrower-selected contractor
  • Renovation funds held and disbursed by the lender
  • One loan, with your full payment beginning roughly within 45 after closing.  For example if you close in June, your first full payment is August 1st

Property Types

  • Single Family
  • Condos (interior repairs only)
  • 2-4 Units
  • Foreclosure/ Short Sale
  • Second Homes/Vacation Homes  and Investment Properties ( Conventional Only)

Product Types

FHA 203K Standard

  • Used to purchase/refinance a home and include needed/desired home improvements
  • May include structural repairs
  • Minimum $5000.00 in improvements
  • Can add additions to home
  • Borrower can select contractor to make all improvements
  • Max loan / repair amount based on county FHA loan Limit ( COUNTY LOAN LIMITS)
  • Must use a HUD Consultant
  • 1-4 family, manufactured, approved FHA condo, primary residence
  • 5% down payment of acquisition and repairs
  • Kitchen, baths, painting, flooring and so much more can be included

 

FHA 203K Limited ( Previously called Streamline)

  • Max renovation amount $35,000.00 ($50,000.00 in designated  areas)
  • Minor cosmetic improvements/repairs
  • No minimum repair
  • Borrower can select contractor to make all improvements
  • No HUD Consultant required
  • Can purchase appliances
  • 1-4 family, manufactured, approved FHA condo, primary residence
  • 5% down payment of acquisition and repairs
  • Kitchen, baths, painting, flooring and so much more can be included

 

VA Renovation

  • Loans up to conventional county loan limits
  • Improvements up to $50,000.00
  • 1-4 Units, manufactured homes, Primary residence only
  • Zero down payment
  • Making the dwelling accessible to persons with disabilities
  • Borrower can select contractor to make all improvements
  • Kitchen, baths, painting, flooring and so much more can be included

USDA Renovation

  • Max loan amount based on count loan limits
  • Zero down payment
  • Single family residence, primary residence
  • Making the dwelling accessible to persons with disabilities
  • Structural / Nonstructural improvements
  • Borrower can select contractor to make all improvements
  • Kitchen, baths, painting, flooring and so much more can be included

Conventional Renovation

  • Max loan limit based on county limits
  • As little as 3% down
  • 1-4 Family, 2nd home, Investment property
  • Manufactured home
  • Condominium
  • Additions
  • Luxury improvements
  • Include pool addition