Home Improvement Mortgage Loans
Home Improvement Financing
Get financing to purchase a distressed property and remodel it with extra funds.
You may also refinance your existing mortgage and renovate your home using equity.
We offer a wide range of of loan programs that will allow you to finance your home improvements. This includes rehab loans if you need to purchase a new home that needs a substantial amount of repairs. We also have excellent cash out refinancing programs that will provide you with the funds that you need to repair or remodel your home.
Making home improvements can significantly improve the value of your home. Not only are you enhancing your quality of life by improving your living space, but you also are increasing the value of your home, therefore increasing the amount of equity that you have in your property. It is very common for homeowners who live in an older home to need a list of renovations in order to bring the property up to optimal conditions. Both efficiency upgrades and cosmetic upgrades will increase your homes appraised value.
Cash Out Refinance:
If you currently own a home and have adequate equity in it you may find your best option to pay for home improvements is with a cash out refinance. This will allow you to have the cash on hand that you need for renovations, and you may also qualify for a lower rate than what your current home loan has.
A cash out refinance is different than a home equity loan in the sense that it is not a second mortgage but an entirely brand new home loan (it replaces the current mortgage and becomes the first mortgage). A cash out refinance is certainly the way to go if you have a lot of renovations that you need to fund. Also, you can use the money for any repairs or improvements that you want.
We encourage you to compare cash out refinancing vs home equity loans to learn more about the difference. A cash-out refinance can come in the form of a conventional home renovation loan, or a government insured loan such as through the FHA or VA.
FHA 203k Rehab Loan:
If you would like to purchase a distressed property and renovate it then a FHA 203k rehabilitation loan might suit your needs perfectly. The FHA 203k allows you to finance the current value of the property plus up to $35,000 for home improvements. Something to keep in mind regarding 203k loans are the restrictions imposed for what renovations you can tie into the mortgage. The FHA forbids any sort of renovations that it deems as “luxury work” such as swimming pools, spas, or other additions of this sort. The FHA 203k is designated for fixing structural issues and other critical home repairs that will make the home more habitable.
If you are looking to purchase a home and receive a loan that allows you to fund luxury additions you may want to consider the Fannie Mae Homestyle program. To learn more about the FHA 203k mortgage, visit the official FHA 203k web page for more information