Can’t find the home of your dreams? Does your existing home need repairs? A renovation loan can be done as a purchase or refinance and gives you the ability to finance approved renovations. With a renovation loan your dream home can be a reality!
Types of Renovation Loans
Fannie Mae HomeStyle
A Conventional HomeStyle loan allows borrowers the opportunity to finance home improvements with fewer restrictions than the FHA 203(k). Examples of allowable improvements include:
- Installing a Pool
- Adding a Wine Cellar and/or Gazebo
- Installation of Luxury Appliances
The Fannie Mae HomeStyle loan gives borrowers the opportunity to turn any home into the house of their dreams!
Offered as a mortgage insured by the Federal Housing Administration, the FHA 203(k) loan allows home renovations with limitations, but is more widely available thanks to lenient lending guidelines. Allowable renovations are:
- Kitchen and bathroom remodeling
- Replacing flooring
- Adding additional bedrooms
Are Renovation Loans Available for Purchase Transactions?
Definitely! A renovation loan gives you the flexibility to create the home of your dreams wherever your ideal location may be!
Can You Purchase Investment Properties with Renovation Loans?
The Fannie Mae HomeStyle may be used for primary residences, second homes, or investment properties!
FHA 203(k) loans are eligible only on primary, owner occupied residences, however the properties may contain up to 4-units, allowing for three units to be used for investment purposes.