Is a renovation loan right for you?
Purchase or refinance a home in less-than perfect condition, make immediate improvements, and pay for them over time. That’s the power of renovation financing. Whether you are a home buyer, a homeowner, a real estate agent, or a contractor who specializes in home improvements, you will find this guide a useful reference tool. It explains the features and benefits of our renovation products and will walk you through the renovation loan process — from application to completion.
Our renovation Loan Officers will explain different loan options and guide you through the process every step of the way.
Let’s explore the exciting world of renovation financing!
Benefits of a renovation loan
in need of renovation is eligible to apply. Qualified customers can choose a loan based upon the appraised value of the home after improvements are made. The
loan includes all of the costs of minor and major repairs, additions and renovations, plus the purchase price or existing home loan balances, minus the required down payment or current equity in the home.
- Transform outdated homes in great locations
- Resolve property problems or required improvements right away
- Modernize or expand to enhance the value of their home
- Repair and remodel their home without depleting their savings
- Provide estimates, knowing financing has been approved
- Be confident they will receive payment for work completed in a timely manner
- Grow their business by providing financing options for their customers
- Purchase a property that is in need of repair or updates
- Rehabilitate properties for to maximize rental income
- Suggest financing options to buyers when properties are found to be in need of significant repairs
Renovation loan eligibility requirements
- Applicants must meet regular loan program credit qualification requirements
- The property must meet renovation loan qualification requirements
- The post-renovation appraised property value must support the mortgage amount
- Down payment and closing cost amounts may vary depending on the loan type
- Funds needed to close may come from flexible sources
- Depending on the program selected, most owner-occupied 1-4 unit, and non-owner single family properties are eligible
- Must be acceptable to local zoning requirements
- Must conform to required property construction standards
- Replacement of electrical, HVAC, plumbing, installation of well and/ or septic tanks
- Aesthetic changes and upgrades such a new siding, paint and landscaping
- Elimination of health and safety hazards such as lead-based paint and mold
- Remodeling kitchens and baths
- Finishing a basement or raising a roof
- Structural improvements, changes or additions
- Installing accommodations for handicap access
- Adding, repairing or re-roofing garage
- Repairing or replacing a deck
- Installing or repairing a swimming pool
- Completely rebuilding a home on a modified existing foundation
- Allowable renovations may vary depending on the renovation loan type the customer chooses
- All renovation work must commence within 30 days of closing
- Renovation work cannot cease for more than 30 days
- All renovation work must be completed within six months