A common mortgage myth related to renovation is that you have to own your home for a million years before you can renovate. When in fact, you can take advantage of a renovation loan before you ever step through the front door. So how does it work? Well, we’re glad you asked.

Beginning the home renovation loan process

Just like a traditional home purchase, the renovation loan process starts with a pre-approval. Once you’ve been greenlighted with a realistic price point, finding your fixer-upper and making an offer comes next. Your Homebridge Mortgage Loan Originator will then suggest the best renovation loan choice for you.

Two of the most popular renovation loans are the FHA 203(k) loan, insured by the Federal Housing Administration, and the HomeStyle loan, guaranteed by Fannie Mae. It’s important to consider what you want to change or update on your home, as both the 203(k) and Homestyle loan provide financing options for structural or cosmetic changes.

The difference between a FHA 203(k) and HomeStyle loan

An FHA 203(k) is backed by the government and is a great option for prospective buyers with less-than-perfect credit scores. A standard FHA 203(k) loan can be used for major remodeling projects. One requirement is that you hire a qualified consultant to oversee every step of the work, from the plans to the finished product.

HomeStyle Renovation loan products are a conventional mortgage that allows buyers to finance improvements for up to 75% of the property’s as-completed value (that’s the appraised value of the home once the upgrades are completed).

No matter what loan option you and your Mortgage Loan Originator decide upon, the Homebridge team is here to guide you through every step of the way. Have questions? As the number one 203(k) lender in the country, our team of experts have the answers! Follow the link below to talk with a Homebridge Mortgage Loan Originator and get all the details on renovation loans.

https://learn.homebridge.com/renovation/

Related Articles

Getting a renovation loan can be crucial to the many families and individuals who want to turn their house into a home. These are the customers that Homebridge has been servicing for decades. Because of our dedication to them, we've been recognized by the U.S. Department of Housing and Urban…
Read More of the post Homebridge Recognized as #1 Renovation Lender By Housing and Urban Development (HUD) for 2019

Whether you’re hosting a few out-of-towners for the weekend or housing the entire extended family, the holidays can force you to realize how much more space your home really needs. Using a 203(k) loan to combine your mortgage payment with renovation costs is a great way to affordably update your…
Read More of the post How a Renovation Loan Can Turn Your House Into a Holiday Home

One of the best parts of homeownership? You are in the driver’s seat when it comes to choosing home financing options. When it’s time to fund a renovation, you can pick from a variety of different home loans to help serve your needs, wants and goals. As the top-rated renovation…
Read More of the post What Renovation Loan Options Are Available to Me?

We’ve all been there: you’re enjoying one of your favorite home renovation shows wondering how you can have the updated features of your dreams at a price you can afford. As the nation’s number one renovation lender, we’re here to turn your dreams into a reality. Whether it’s your first…
Read More of the post DIY – Home Renovation with Homebridge