FINANCE: Renovation and home improvement loans
Posted November 2, 2014 1:05 p.m. EST
Updated March 30, 2015 9:08 a.m. EDT
Selecting the right lender makes all the difference in the borrowing experience. Characteristics such as professionalism, integrity, and dependability matter most when shopping for a mortgage. In today’s housing market, renovation and home improvement loans are becoming more and more popular.
The first step in the loan process is to determine what the borrower qualifies for in order for them to get pre-approved. Once the borrower finds a home and determines what improvements to make, the mortgage officer works with the renovation consultant and contractor to determine the cost of the desired work. Then, those costs are financed into the price of your home. The mortgage consultant takes care of the title work, appraisal, and any other required paperwork.
The FHA’s 203k Program
FHA’s 203k program permits homebuyers to finance additional repairs into their mortgage to improve or upgrade their home before move-in. With this product, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements.
The 203k Streamlined Program
The streamlined 203k program is intended to facilitate uncomplicated rehabilitation and/or improvements to a home for which plans, consultants, engineers and/or architects are not required. This program includes the discretionary improvements and/or repairs.
The Fannie Mae HomeStyle® Renovation Loan
The Fannie Mae HomeStyle® Renovation Loan is a conventional mortgage product that allows borrowers to finance either the purchase or refinance of a home and include the cost of substantial repairs or improvements within a single mortgage. There are no restrictions on the type of improvements that can be financed. This loan is available to owner occupants, second homebuyers and investors.
Movement Mortgage is a full service lender with in-house processing, underwriting, and closing, offering clients a hassle free lending experience with superior service. Contact a mortgage consultant to see what options are available to you.
Read more at our partner website: New Homes & Ideas.