Renovation Loans

Renovation Loans: Finance Your Purchase and Improvements in One Loan

A renovation loan lets you combine the purchase price of a home and the cost of repairs or upgrades into a single mortgage. Instead of depleting your savings after closing or opening a high-interest credit line, you finance everything together at a low mortgage rate. It is one of the smartest ways to buy a home that needs work.

Types of Renovation Loans

• FHA 203(k): The most flexible renovation loan available. Allows major structural repairs, full kitchen and bathroom remodels, and FHA will even finance your mortgage payments while the home is being renovated so you are not paying rent and a mortgage at the same time.
• Conventional Renovation Loans: Fannie Mae HomeStyle and Freddie Mac CHOICERenovation programs allow any type of renovation on a primary residence, second home, or investment property.
• VA Renovation Loans: Eligible veterans can finance a home purchase plus renovation with zero down payment required.

How It Works

You find a home that needs work. Rob helps you structure a loan that covers both the purchase price and the renovation budget. After closing, the renovation funds are held in escrow and released to your contractor as work is completed. When the project is done, you have a fully upgraded home and one clean mortgage payment.

Loan Limits and Down Payment

Renovation loans are available up to the conforming loan limit. FHA renovation loans require 3.5% down. Conventional renovation loans require as little as 3% to 5% down. VA renovation loans require no down payment for eligible veterans.

Ready to Renovate?

Renovation loans require a lender who knows the process well. Rob Tennyson has experience closing renovation loans and can guide you from start to finish. Call 714-400-2317 or apply by clicking here.