Sometimes home buyers find a house in a perfect neighborhood that needs some personalized improvements. They love the home’s layout, the school district, the neighborhood amenities and more, but the appliances may need updating, the heating and cooling systems may need modernizing, the basement may need finishing and the kids just might like to have an in-ground pool.
Financing this ‘almost perfect’ home with a traditional mortgage would leave the homebuyers on their own for any updates, repairs or improvements, but a renovation mortgage build the cost of the renovations into the total loan amount.
From simple jobs to complex remodeling projects, a renovation mortgage from LOANLYNX allows buyers to finance their house and home improvement projects.
Acquire a New Home with a Renovation Loan
If you find a house to buy with spectacular potential but requires major repairs or reconstruction, a restoration loan can make your vision possible. Using one loan for the home’s purchase and improvements really simplifies the process.
Enhance Your Existing Property
If you love your current home and location but maybe it’s too small or outdated, use a renovation loan to remodel and customize it inside or out to make everything exactly as you want. You can choose from a variety of loans depending on the scope and type of project.
Reasons to Renovate or Update a Home
- Restore an older house to its original style, with modern conveniences.
- Enhance or repair a home that’s in a location you like.
- Expand existing rooms for greater comfort and relaxation.
- Give an outdated home a fresh, modern feel.
- Take advantage of unused space like an attic.
- Create additional space for a growing family.
- Increase a home’s resale value.
- Add an office or game room.
- Prepare the home for resale.
The FHA 203(k) loan allows a borrower to purchase or refinance and rehabilitate a property with one loan closing. The projected rehabilitation costs are held in an escrow account and disbursed as work is completed and inspected. The loan amount is based on the projected market value of the property when all repairs are completed.
An important tool for community and neighborhood revitalization, the FHA 203(k) loan offers flexible qualifying and low down payments:
The HomeStyle® renovation loan allows you to either purchase a new home or refinance your existing home and make personalized improvements with one loan closing. The cost of your personalized improvements is placed in an interest bearing Escrow account and disbursed as the work is completed and inspected. *HomeStyle® is a registered trademark of Fannie Mae.