HomeStyle Renovation Loan
Are you looking to renovate or repair a new home, your primary residence, a second home, or an investment property? If so, you'll love the HomeStyle Renovation Loan.
More flexible than the FHA 203(k) or other costly financing methods, the HomeStyle Renovation Loan is a convenient way to pay for repairs or improvements totaling up to 75% fo the as-completed appraised value of the property. Available for first-time home buyers, borrowers looking for a vacation or second home, and investors, the HomeStyle Renovation Loan features the lower interest of a first mortgage and typically lower closing costs. A limited cash-out refinance program is also available.
Don't bother with a high-interest home equity line of credit, or a second mortgae when you can use a low-interest HomeSytle Renovation Loan to make those much needed improvements or repairs. Call today to see if you qualify!
BENEFITS
- Safety, soundness, and structural repairs allowed
- Loan amount is based on "as completed" vlaue of the home or the purchase price and cost of renovation, whichever is less
- Down payment options available as low as 5% for the one-unit principle residence with a fixed rate mortgage
- Purchase and limited cash-out refinance available
- Fixed rate terms from 15-30 years
TO QUALIFY
- Minimum of 620 FICO required
- Non-occupant borrowers not permitted
- Total cost of renovations can be no more than 75% of the as-completed value
- A consultant is required for repairs greater than $15k, or when any structural work is needed
- Borrower's contractor must be approved
- Eligible properties include 1-4 unit primary residences, one unit second homes, and one unit investment properties
FHA 203K
203k Can be Used for Purchases or Refinances
TWO VERSIONS
- Limited 203K: Cost of repairs are limited to $35,000 (no HUD Consultant)
- Standard 203K: Unlimited repairs (HUD Consultant required)
- One time closing
- 3.5 down required for purchases (based on total of acquisition plus renovation costs)
- Contractors can be chosen by the buyer but can have no affiliation or relation to the buyer/owner
- Most 203K limited loans are approved and closed within 30 days
- Draws are done in house and under our control
- Owner-Occupied Only (Standard FHA occupancy rules apply)
- Appropriate use of a 203K incudes:
- Remodel of kitchen/bath
- Renovation of a room
- Painting the house
- Replacing a leaky roof
- Putting in a new carpet or tile flooring
- Updating electrical wiring or lighting
- Updating plumbing, piping or fixtures
WHY WE LOVE THIS
- Down payment can be a gift
- Same 3.5% investment required as standard FHA loan
- No renovation experience required
- Allows buyers to acquire homes that won't pass inspection
- Same credit requirements as standard FHA loans
