Upgrade Options: Financing Home Improvements With Your Mortgage

Renovation Home Loans can make the difference between a house and a dream home. Some properties are almost perfect—the location is good, and the property has potential, but needs some improvements. There are several programs to help with your renovation aspirations that you can use to purchase or refinance a home all with one loan.

FHA 203k

Finance as little $5,000, and as much as the difference between your loan amount, and up to 110% of the as-repaired value. Some common projects you can use the 203k for include:

  • Home additions and remodels such as bathrooms, bedrooms, finished attics/basements, skylights, adding a 2nd stories, and more
  • Replacement or repair of roofs, HVAC systems, plumbing or electric systems, flooring, decks and patios, windows and doors, and more.
  • Improvements for accessibility
  • Major landscape work
  • Residing and interior/exterior paint

 

HomeStyle

A conventional home loan options that allows you to finance up to 75% of the as-completed appraised value of the property Some common projects you can use HomeStyle for include:

  • Renovating up to 4 unit properties
  • There are no required improvements or restrictions to the types of renovations. However, renovations must be permanently affixed to the real property
  • May be used to complete the final work on a newly built home when the home is at least 90% complete
  • Adding accessory units, garages, rec rooms and swimming pools are allowed
  • Solar panels and other energy improvements (with HomeStyle Energy)

 

Energy Efficient Mortgage (EEM)

An FHA or VA option that allows you to finance up to 5% of the property’s value to cover the expense of a cost effective energy package. Common projects you can use an EEM for include:

  • Attic and wall insulation
  • Duct sealing and replacement
  • Weather-stripping and caulking to seal air gaps
  • High performance windows and sliders
  • High efficiency furnaces and air conditioners
  • Can be combined with the full FHA 203k

If you’re interested in assessing your renovation power, give me a call to discuss your ideas and budget. Whether you’re looking to update a home you’re currently living in, or a home you’re looking at needs up upgrades, we have programs to help!

 


* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.