Whether you currently own your own home or have a home in mind that you want to purchase that may need some work or updating the answer may be a home renovation loan. When most people think of a home renovation loan the first thought that may come to mind is a Home Equity Line of credit. For small repairs that can be an answer. However, home equity loans have many limitations the biggest is that many states restrict the total amount of debt you can have on a home and you may not have the necessary equity to do the repairs you would like to do.
Types of home renovation or rehab loans in America
Rehab loans for your current Personal Residence or buying a personal residence
FHA has two types of renovation or as FHA calls them the 203k mortgage loans. Depending on what you want to do to the home there is the FHA 203k renovation loan or the HomeStyle renovation loan
- First is the FHA full 203k rehab or renovation mortgage that covers major and extensive repairs, renovation or upgrading. You can read more about the FHA full 203k renovation loan here. The FHA full 203k renovation loan applies to any home you own or want to buy as your personal residence.
- Second is the FHA 203k streamline rehab or renovation mortgage that covers minor repairs, renovation or upgrading up to about $35,000. You can read more about the FHA streamline 203k renovation loan here. The FHA 203k streamline renovation loan applies to any home you own or want to buy as your personal residence.
To discuss your project and how a renovation loan can help you and your rehab project just contact us here.
While FHA will allow you to make extensive repairs to the home with the 203k renovation loan it does have some limits for items that would be considered luxury items such as pools, spas and other items that are not considered necessary to live in the home. This is where the Fannie Mae HomeStyle Renovation loan comes in.
HomeStyle Rehab loans for your current home, 2nd home, or HomeStyle investment property or buying a 2nd home or investment property.
HomeStyle rehab mortgages can be used not only to purchase or renovate your primary home but also used to purchase or renovate 2nd homes and HomeStyle purchase or renovate investment property loan is also available. For more information on the Fannie Mae HomeStyle rehab loans and how to use it on your current 2nd home or investment property or buying a 2nd home or investment property click here.
Fannie Mae has the HomeStyle Renovation loan and since it’s a conventional loan it will allow for “luxury home remodel” items that the FHA 203k loans do not allow. You can read more about the HomeStyle renovation loan here for your personal home.
Availability of renovation Mortgage Loans in the US
Home improvement, renovation, and rehab Mortgage Loan State AvailabilityUS State availability for Home improvement, renovation, and rehab Mortgage Loans
Renovation loans can make your existing real estate whether it is your current home, 2nd home or investment real estate spring to life. Just contact us to discuss the details your project and how a rehab loan can help you achieve the goals of your project.