Renovation loans help you access funds for repairs and renovations of your existing property or new property. There are a variety of renovation loans available to you depending on your needs. Some of the options include the FHA 203(k) Loan, Fannie Mae Homestyle Loan and cash-out refinancing loans..
The FHA 203(k) Loan is a government-backed loan for two types of applicants. If you live in a home that requires repairs and renovations for up to $35,000, you can apply for this loan. You can also apply for this loan if you are looking to purchase a new primary residence that is in need of repairs and renovations. In this case the renovation portion of the loan will be built into your property mortgage.
You can use a Fannie Mae Homestyle Loan for both investment properties as well as a primary residence. The Homestyle Loan is aimed at applicants with better than average credit while the FHA 203(k) Loan can be accessed by those with average credit. You can use the Homestyle loan for structural repairs and cosmetic repairs. Your mortgage loan amount will be based upon what the property will be valued at after the repairs.
The cash-out refinance loan option is a good option if you have at least 20% equity in your home. The cash-out refinance loan allows you to remortgage your home and take out some of the equity in it, which you can then use for repairs.
You have a wide variety of loan types at your disposal when you are looking for a renovation loan. Contact our team and we will be able to help you figure out what the best renovation loan option is for you.
Give us a call so we can learn a little bit about your renovation project. From there we can figure out the most cost-effective loan for you. The next steps will be getting your documents together so we can start processing the loan for you.
Take out cash today with a cash-out refinance.