The Perfect Loan for the Almost Perfect Home
Whether your home improvement projects are large or small, a home renovation loan can help you get the job done.
With a home improvement loan, you’ll be able to buy or refinance a home and include money for simple upgrades, remodeling projects or even more complex renovations. Monthly payments on home renovation loans are typically lower than credit cards or personal loans and, in some cases, financing may even be tax deductible.¹
What are the Features & Benefits of Renovation Loans?
Making significant home improvements such as adding an extra room or replacing the roof not only makes a difference in how much you enjoy your home, but it can improve its overall value as well.
If you aren’t happy with some aging features of your house, or want to buy a home that needs work, consider using a home renovation loan to transform a house into the home you’ve always dreamed of.
Although you may be able to pay for home improvements with a personal loan or other types of financing, these methods have higher interest rates and monthly payments. With a renovation loan, you’ll be able to finance a construction period of up to six months with only one set of closing costs and absolutely no prepayment penalty. While the total loan amount is based on the property’s appraised value once the repairs are complete,² the down payment requirement may be as low as 3.5%.
Our Renovation Loans
FHA 203(k) Loan
Homebridge is the top home renovation loan lender in the nation. According to data from the Department of Housing and Urban Development (HUD), Homebridge ranks No. 1 in the nation for originating FHA 203(k) Renovation Loans.
If you plan to purchase a fixer-upper or renovate your existing home, an FHA 203(k) loan may be the perfect loan for you. FHA 203(k) loans are backed by the federal government and are a great loan option for those who want to purchase a home and perform upgrades, repairs, remodel or customize to their needs and wants.
Fannie Mae HomeStyle®
The Fannie Mae HomeStyle renovation loan allows you to either purchase a new home or refinance your existing home and make personalized improvements with one loan closing. The cost of your personalized improvements is placed in an interest-bearing Escrow account and disbursed as the work is completed and inspected.
The HomeStyle loan does not have any minimum amount of improvements or any restrictions on the type of repairs that can be included in your loan. The only requirement is that any improvement must be permanently affixed to the property and add value to your property. HomeStyle allows you to build home equity while increasing your comfort and enjoyment in home ownership.
¹Please consult a tax advisor for further information regarding the deductibility of interest and charges.
²For FHA 203(k) purchase transactions the maximum loan amount is the lesser of the sales price + renovation costs or 110% of the after improved value, times the maximum loan-to-value. For refinance transactions the maximum loan amount is the lesser of the property value before renovation + renovation costs or 110% of the after improved value, times the maximum loan-to-value. Loan amount must be within FHA county loan limits.”
For HomeStyle® purchase transactions the maximum loan amount is based on the lesser of the sales price + renovation costs or 100% of the as-completed value, times the maximum loan-to-value allowable. For refinance transactions the maximum loan amount is based on the lesser of 1) 100% of the as-completed value times the maximum loan-to-value or 2) the balance on the existing loan plus the renovation cost plus the settlement costs. The maximum repair amount is limited to 75% of the as-completed value. HomeStyle® is a registered trademark of Fannie Mae.