Turn a Fixer Upper into Your Dream Home
When looking for a good renovation property, potential and vision are everything. You find a house that's not quite ready to be a home, but you have the right ideas and plans to get it there. What will help you here is likely a renovation loan. A renovation loan allows you to combine the property costs and rehabilitation costs into one loan. This single loan is designed to save you both time and money in the long run and ensure that you’ll have the necessary funds to complete your project in a timely manner. With a renovation loan, you could be much closer to that dream home than you had anticipated!
Home Style Renovation Loan
A HomeStyle renovation loan can be used to cover different costs of remodels, repairs, and improvements that are affixed to the home. These loans can be used for renovation on either a primary residence, secondary residence, or an investment property. There is no minimum dollar amount required for the repairs or restriction on types of repairs allowed. While there are no specific requirements other than having all new building/improvements permanently affixed to the home, the renovations must add value to the property and they must be completed by a licensed contractor. A member of our team will be happy to speak with you regarding further questions and qualifications for a HomeStyle loan.
Limited 203(k) Rehabilitation Mortgage
For borrowers interested in non-structural renovations, such as updating the kitchen and bathrooms, adding new flooring, upgrading appliances, roof repairs, and more, an FHA Limited 203(k) may be perfect for you. This type of FHA loan provides borrowers with an additional $35,000 (including a contingency reserve) that they can use to bring their renovation visions to life. With a little vision and the right funding, borrowers can help bring older homes back into the market.
Standard 203(k) Rehabilitation Mortgage
Some homes require a little extra time, energy, and money to complete the rehabilitation. If you foresee your dream home’s renovations will cost over $35,000, a Standard FHA 203(k) might be the solution you’re looking for. Without the restrictions imposed by the Limited 203(k), borrowers can plan more extensive remodeling for their property. This expands eligible repairs to the removal or moving of walls, minor pool repairs, and even landscaping. With these additional funds* buyers can further repair homes that are less than “turn-key ready” and thus expand the number of prime residential homes on the market.
*Final disbursement of funds is subject to final inspection.
If you are interested in a renovation loan, please contact a member of The Patterson Team.