Some properties need a little extra TLC to transform them into a dream home. Renovation and rehab mortgage options, such as the FHA 203k rehab and the Fannie Mae Homestyle Renovation loan program, combine home purchase or refinance with home improvement financing in one loan with one closing. This provides a convenient way for borrowers to make renovations, repairs or improvements with a first mortgage, rather than a second mortgage, home equity line of credit or another more costly financing method.
Eligible improvements that may be covered in renovation financing include:
- Repair/replacement of roofs, gutters, and downspouts
- Repair/replacement/upgrade of existing heating, ventilation, and air conditioning systems
- Repair/replacement of plumbing and electrical systems
- Repair/replacement of flooring
- Minor or major remodeling, such as kitchens and baths
- Increase square footage – add a 2nd floor or extend a room for more living space
- Exterior and interior painting
- Weatherization, including storm windows and doors, insulation, weather stripping, etc.
- Purchase and installation of appliances, including free-standing ranges, refrigerators, washer/dryers, dish washers, and microwaves
- Improvements for handicap accessibility
- Remediation of lead-based paint hazards, Mold or Asbestos.
- Repair/replacement/or addition of exterior decks, patios, or porches
- Basement finishing and remodeling
- Basement waterproofing
- Replacement of windows, doors, and exterior siding
- Septic system and/or well replacement
Unable to find that “perfect” home? Your current home does not have enough equity to cash out for needed improvements? Renovation Loans may be the answer you’re looking for. These loans are based on the future value of the home. Many TV shows are promoting what can be done with renovations – Let a Mortgage Connect Loan Specialist help you find the money you need with one of our Renovation Loan Programs and get your Dream Home Today!
