The purchase of a house that needs repair is often a catch-22 situation, because the bank won’t lend the money to buy the house until the repairs are complete, and the repairs can’t be done until the house has been purchased. An FHA 203K Renovation Loan or the Fannie Mae Home-Style Renovation Loan are options used to fix-up, repair, or renovate homes. The Renovation Loan allows access to a government-backed loan program for needed funds and Home-Style Conventional renovation program is done by private investors and follows conventional guidelines. Think of these as a one-time close construction loans. At closing, the seller receives their money, and the rest is put into escrow for the buyer to use for rehabbing the property. Each program has its respective advantages, and either could be right for you.
Advantages of Renovation Loans
Who Can Benefit?
It doesn’t pass the lender appraisal, and the sellers aren’t going to fix anything.
Need new energy efficient and new appliances.
203K Renovation Loan
If you have found a home that has the perfect location for your family but isn’t quite up to snuff, a Renovation Loan could be perfect for you. Add a bedroom or bathroom, finish the basement, remodel the kitchen – whatever you need to do to make the perfect location also the perfect home, a Renovation Loan allows homeowners the opportunity to start fresh with a pre-existing home.
USA Mortgage Advantage
Loans are done in the house, therefore, make it faster and easier.
Extensive experience in doing these loans.
Offers very competitive rates and fees.
Fast turn times in approval and closing.
What types of repairs are eligible?
- Roof, gutters, downspouts
- Existing HVAC systems
- Plumbing and electrical systems
- Repair, replace and add exterior decks, patios. porches
- Basement waterproofing
- Window and door replacement and exterior siding
- Septic and well repair or replacement
- Improvements for accessibility
Local Business Partner
Roofing and Exteriors Company
CoMo Premium Exteriors