Whether you need a new roof or your kitchen is outdated, there is a mortgage that’s right for your fixer-upper. You can explore the different types of renovation loans and the different kinds of projects you can and can't use a renovation mortgage for by downloading our free infographic here.
It's important to understand that by adding an extra room or even replacing the roof not only makes a difference in how much you enjoy you home, but it can improve its overall value as well.
If you aren’t happy with some aging features of your house, or want to buy a home that needs work, consider using a home renovation loan to transform a house into the home you’ve always dreamed of.
Benefits of a Renovation Loan
The main benefit of renovation loans is that they give you the ability to buy a home in need of repairs and finance those repairs as part of the mortgage. They also have low down payment requirements and great rates.
Types of Renovation Loans
HomeStyle Renovation Loan
One of the best-known loans for home improvements, Fannie Mae’s HomeStyle Renovation loan, allows borrowers to either buy a place that needs repairs or refinance their existing home loan to pay for improvements. This loan can be used on any type of renovation project, provided the improvement is permanently affixed to the property and adds value. For instance: new kitchen or bath, new pool, new roof, and more!
This type of loan is used for minor remodeling and non-structural repairs. Costs cannot exceed $35,000 (no minimum repair cost)
This type of loan requires a minimum of $5,000 in eligible improvements.
Renovation Mortgage Projects
Click here to explore the different kinds of projects you can and cannot use a Renovation Mortgage for.