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Renovate & Repurpose
Love the house, but it doesn’t feel like “home”?
When purchasing a home that needs a little TLC, Typical mortgage loans won’t pay for repairs you want when purchasing a home that needs a little TLC. Not having the cash to make needed renovations or repairs before moving in can be a big obstacle in the decision process.
Our renovation and repurpose mortgage programs may offer financing solutions for qualified buyers looking to renovate or repurpose. These solutions allow borrowing based on what the house is expected to be worth after the home renovation or repurpose is complete.
Homestyle Renovation Mortgage
This loan allows a borrower to finance home improvements in a purchase or refinance transaction of an existing home. The funds obtained can cover the costs of repairs, remodeling, renovations and / or energy efficient improvements. There are no required improvements or restrictions on types of repairs, but they must be permanently affixed to the property and add value. Renovations must be performed by lender-approved licensed professionals and completed within six months after closing.
Features
~ 15 and 30-year fixed-rate mortgages
~ Adjustable-rate mortgages
~ Primary residences: 1-4 units
~ Single-unit second homes and single-unit investment properties (includes co-op and condos)
Benefits
~ Cost-effective way to improve home
~ Single mortgage means lower closing costs and lower interest rate
~ Loan amount based on ‘as-completed’ value of the home
*Eligible borrowers include individual homebuyers, investors, local government agencies and nonprofit organizations.
FHA 203 (k)
This program provides a government-insured loan that enables a qualified borrower to purchase a home that may need repairs or for homeowners to refinance an existing home for remodeling. Popular features include a low downpayment with a 620 minimum FICO score and a fixed-rate option.
Features
~ Primary residences that are 1 to 4-unit purchase properties and rate /term financing
~ Fixed-rate mortgages with 30-year term
~ 1-year adjustable-rate mortgage with 30-year term (up to six months for rehabilitation)
~ One underwriting review and one closing for rehabilitation construction and permanent financing
Benefits
~ Ability to purchase a home with repair needs
~ A cost-effective way to repair or improve a current home
~ May be used to rehabilitate a neglected or damaged foreclosure
~ An alternative to a closed-end second mortgage or home equity line of credit (HELOC)
Common Improvements and Repairs
Bathroom Remodeling
Kitchen Remodeling
Disability/Accessibility Improvements
Septic System replacement or repair
Porches/Patios/Decks/Driveways
Flooring/Carpet
Roofs/Gutters/Downspouts
New Appliances, AC Units,
Single or Double Dormers
Roofs/ Siding/ Windows
Interior/Exterior Painting
Waterproofing
Electrical Systems
New furnace/Hot Water Heater
FIND OUT HOW MUCH YOU CAN AFFORD
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