A Different Kind of Mortgage Company Syracuse Securities Facebook Syracuse Securities LInked In APPLY NOW
(800) 448-3200

RENOVATION LOAN

For current rates on the following loan programs, please contact your local office today!

Two renovation mortgage programs offer solutions for buyers and homeowners who want to renovate. Fannie Mae and Federal Housing Administration have home renovation mortgage programs that allow buyers to borrow based on what the house is expected to be worth after the home rehab is completed. Homeowners can also use both programs to refinance their existing mortgage plus the renovation costs into the one loan.

FHA's 203(K) program and Fannie's HomeStyle Renovation Mortgage have been around for years. Unlike credit lines, these renovation loans require borrowers to show that the money was spent on the house. In the standard FHA 203(K) program, the borrower hires a consultant to access the construction plan and to perform an inspection before each draw is made. A "draw" happens when a portion of the money is disbursed to the contractor. Borrowers have up to six months to finish the project and are allowed up to 5 draws. The HomeStyle program does not require a consultant to monitor the work, only an initial and final inspection.

Great for foreclosure hunters

While rehab loans involve more work than traditional mortgages, they can be a great tool for those who want to buy discounted homes that need repair.

203(K) vs. HomeStyle

Those who don't have great credit should probably opt for an FHA 203(K). Most Fannie Mae HomeStyle lenders require a credit score above 660. To get the best rate on a HomeStyle mortgage, borrowers need to have a minimum 740 credit score

How Much do you need?

FHA's 203(K) rehab loan does not allow borrowers to use the money for luxury items such as adding a swimming pool or a spa while HomeStyle does.

Borrowers can opt for a streamline FHA 203(K) home rehabilitation loan if they need less than $35,000 and don't have to do any structural repairs or major landscaping work. The streamline 203(K) is similar to a standard 203(K) but is easier to get and involves less paperwork and less bureaucracy.

GET FREE PRE-QUALIFIED IN MINUTES! ยป

Call us today to speak directly with a loan officer or send us an email

CALL NOW
EMAIL NOW
Copyright ©Syracuse Securities Inc. All Rights Reserved.
Website Design by Function One