Fairview Lending has been helping real estate buyers transform their new home purchases into their dream home. Fairview Lending offers a Renovation Remodel loan that will allow you to finance into the loan the cost to remodel a kitchen, floors, add new windows, roof , add a pool and much more. So if you found the great home that just needs some updating or a pool to make it perfect a Renovation Loan may be a great option for you.
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Renovation Loan Options
There’s a couple different types of renovation loans available. The two main ones are the FHA 203k loan and the Fannie Mae HomeStyle loan.
The FHA 203k Loan
The first renovation loan is known as the FHA 203k. In short, the Federal Housing Administration has a loan that allows you to finance the purchase and the remodel of a home up to around $30,000. It’s a great loan for a buyer because it allows you to buy and fix up a house in one transaction. Let’s take a look at the proso the FHA 203k loan.
Pros:
- Great for buyers
- Allows you to finance the purchase and up to $30,000 in remodel costs
- Only 3.5% down payment
- Allows you to build equity fast
- Qualify with lower income
- Renovate a condo more easily
The Fannie Mae HomeStyle Loan
The Fannie Mae HomeStyle loan works a lot like the FHA 203k. This loan allows borrowers to purchase a home that needs repairs or updating, or refinance their existing home, and include the necessary funds for renovation in the balance of the new loan. The main difference between the two is that the Fannie Mae HomeStyle loan is backed by a private lender and not the federal government. That being said, the loan is a bit more flexible in some circumstances. Let’s take a look at the pros of a Fannie Mae HomeStyle Loan to learn more.
Pros:
- Applies to investment properties and homes you plan to live in
- No restrictions on the type of improvements
- No mortgage insurance premiums
- Higher loan limits
- Structural additions allowed
- Luxury items allowed ie: pools
The Bottom Line on Renovation Loans
A licensed contractor must be used to complete the renovations. If you do not have one already selected Fairview Lending has worked with several local renovation building experts and can refer you names. Fairview Lending will also discuss what Renovation options you have available and what may be the best fit for you. So if you found a great home that needs some updating call Fairview Lending so they can help you with getting a Renovation loan to make your new home purchase perfect.