Renovation Loan Options and Construction Loans
FHA 203(k) and Fannie Mae Renovation
With an FHA 203K or Fannie Mae Renovation loan, you can purchase or refinance a home that’s less than ideal, make immediate improvements and pay for them over time.
Allow for upgrades or expansions to a home in addition to making needed repairs.
You can repair, remodel or add on to your home without draining your savings, or running up your credit cards.
Appraisal and loan amount are based on the “after repair” enhanced value, see you can maximize your project scope and budget. These loans are available for primary residence, second home or investment property. There is no limit on budget, but loan size capped by FHA and Fannie Mae. The down payments can be as low as 3.5%. There are no consultants needed on renovation projects less than $75,000.
A construction loan and a mortgage rolled into one! One approval – one closing.
Many banks offer a “One-Step Construction Loan”, which are used to finance a combination of home construction and purchase. This product allows you to lock in the interest rate on a permanent loan before construction even begins and avoid interest rate risk and fluctuations by locking your rates before construction starts.
Financing is available for up to 90% of the value of a new home up to $1.5 million.
A lot purchase may be included in the loan and also available for jumbo renovation projects. This saves your builder from funding the cost of construction, which saves you money as your loan will cost less than theirs. To learn more, visit our connection in the mortgage industry – Palmer Mortgage to learn more and when you’re ready for a construction, renovation or remodeling quote, give us a call today!