Home Renovation Loans
What are HomeStyle Renovation Loans?
The HomeStyle Renovation mortgage provides a convenient and economical way for borrowers considering moderate home improvements. Homebuyers have the chance to make repairs and renovations with a single-close first mortgage rather than taking out a second mortgage, using home equity line of credit or utilizing more costly methods of financing.
The home renovation loan enables borrowers to purchase a home that needs repairs or refinance the mortgage on their existing home. It also includes the necessary funds for renovation in the loan balance. The loan amount is based on the "as completed" value of the home, not the present value.
Features of a Home Renovation Loan
• Principal residences and second homes are eligible
• Has 15 and 30-year terms
• Renovation costs are limited to 50% of the "as completed" value of the home
• There is a 5 percent down payment based on the "as completed" value of the home
• Borrower has up to 11 months to complete the renovations
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Home Renovation Loans with JTS & Co.
At JTS & Co., we offer a variety of mortgage loans for your property. Whether you are looking to buy a home, need to refinance, or just want to renovate a room in your current home, a loan from us will help make your dream into a reality. With today's low interest rates and quick closing times, you will be on your way to fixing up your home in record time.
Now is the time to take advantage of some very unique construction loans as well, especially if you have found the fixer-upper of your dreams. With Homestyle Renovation loans, you can turn that property into a house that everyone on the block will envy.
What is a Homestyle Renovation Loan?
It used to be when you wanted to renovate or do major repairs to a house, you would take out a line of credit or turn to a home equity loan. Those loans are in the past. Today, there are different types of home loans specifically made for those wishing to renovate their homes.
Fannie Mae, one of the government enterprises chartered with providing homeowners with affordable mortgage financing, came up with a program that gives homeowners everything they need for home renovation financing. They have come to recognize that there are many properties out there in desperate need of renovation.
You may have settled on a house that you want to repair. These renovations might be very large, or smaller tweaks to an already renovated home. Large or small, our team of mortgage loan experts will work with you to get you the funding you need now.
A Homestyle Renovation mortgage allows the borrower to obtain the money needed to purchase a home, and the cash needed to repair or renovate. You can use this money for other things as well, like efficient energy improvements. Fannie Mae requires that any improvements be permanent fixtures to the home, and that they increase value.
The different home renovation and improvement loans include:
- FHA 203K
- Fannie Mae Homestyle
- Freddie Mac Choice Renovation
- VA Renovation
Benefits of a Homestyle Renovation Loan
- No need for you to spend out-of-pocket cash for repairs or renovations
- You can now search for competitively priced older homes or fixer-uppers
- Purchase a home and borrow the funds you need for a total renovation project all rolled into one with a 30-year fixed-rate mortgage
- Your down payment could be as low as 3% to 3.5% if you apply for a Fannie Mae Homestyle or FHA 203K loan.
- If you are a Veteran, you may qualify for 0% down.
- You will have a contingency reserve. Because we know how renovations go, bigger problems may arise with repairs, and you will have the funds to cover them.
- You can finance up to 6 months of mortgage payments into your loan amount. Give yourself a running start when it comes to paying back what you owe.
How Does a Homestyle Renovation Mortgage Work?
The Homestyle Renovation loan allows the buyer to combine the purchase of their home with the extra financing needed to make all the renovations and repairs. With a loan like this, there is no second approval needed, no extra paperwork, and no second closing. Everything is combined into one loan.
You may not be familiar with home renovation mortgage loans, which is okay. Our experienced team of mortgage lenders will walk you through all the particulars. With a low down payment, you can secure the funds to repair broken pipes, replace windows and doors, replace the roof or add new appliances, flooring and carpeting to your home. As long as each improvement is a permanent fixture that belongs to the house, you have the financing to make the improvement.
It is nice to know that you do not have to take a second mortgage on your property. Instead of being responsible for two monthly mortgage payments each month, you only have one payment, and one that has low interest rates.
Secure a Homestyle Renovation Loan Today
A Homestyle Renovation mortgage loan is available for a primary, single-family residence, or a second home only. If you are considering fixing up an investment property, a Homestyle Renovation loan is the way to go.
If you have your heart set on a certain type of home that you want to live in but can’t find anything in town you like except for a run-down property, now you can affordably start your renovation project. You can customize your home the way you want it, and not have to fund the whole project on your own, or with your own money.
At JTS & Co., we are all about providing you home renovation loans. We offer many other types of loans as well, everything from conventional 30-year fixed, to refinancing, and everything in between. Go after that dream of the big, old home you have always wanted. We can make it happen, you just need to reach out to JTS & Co.