The Perfect Loans For Home Renovation
Whether your home improvement projects are large or small, a home renovation loan can help you get the job done.
With loans for home renovation, you’ll be able to buy or refinance a home and include money for simple upgrades, remodeling projects or even more complex renovations. Monthly payments on home renovation loans are typically lower than credit cards or personal loans and, in some cases, financing may even be tax deductible.1
What are the Features & Benefits of Renovation Loans?
Making significant home improvements such as adding an extra room or replacing the roof not only makes a difference in how much you enjoy your home, but it can improve its overall value as well.
If you aren’t happy with some aging features of your house, or want to buy a home that needs work, consider using loans for home renovation to transform a house into the home you’ve always dreamed of.
Although you may be able to pay for home improvements with a personal home loan for renovation or other types of financing, generally these methods have higher interest rates and monthly payments. With a renovation loan, you’ll be able to finance a construction period of up to six months with only one set of closing costs and absolutely no prepayment penalty. The total loan amount is based on the property’s appraised value once the repairs are complete, ² the down payment requirement may be as low as 3.5%.
FHA 203(k) Loan
HomeBridge is the top home renovation loan lender in the nation. According to data from the Department of Housing and Urban Development (HUD), HomeBridge ranks No. 1 in the nation for originating FHA 203(k) Renovation Loans. HomeBridge does business as FinanceMyHome.com
If you plan to purchase a fixer-upper or renovate your existing home, an FHA 203(k) loan may be the perfect loan for you. It is one of the best home renovation loans for homeowners. FHA 203(k) loans are backed by the federal government and are a great loan option for those who want to purchase a home and perform upgrades, repairs, remodel or customize to their needs and wants.
Fannie Mae HomeStyle®
The Fannie Mae 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.
The HomeStyle® loan does not have any minimum amount of improvements or any restrictions on the type of repairs that can be included in your loan. The only requirement is that any improvement must be permanently affixed to the property and add value to your property. HomeStyle® allows you to build home equity while increasing your comfort and enjoyment in home ownership.