• Renovation Loan

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    • Whether you need a renovation loan for home repairs or to purchase a home needing repairs, we have the right solution for you.  The attractive thing about rehab loans is that it combines two loans (a home loan and rehab loan) for ease.

      What is a Renovation Loan (Rehab Loan)?

      It all depends on if you’re a homeowner or home buyer. For a homeowner, this type of loan allows you to refinance your mortgage so you have the funds to renovate. For home buyers, this loan allows them to purchase a home with a renovation budget. There are many types of rehab loans all depending on your unique needs.

      Jumbo Renovation Loan

      A jumbo renovation loan provides a loan for basic repairs or remodels like:

      • Kitchens
      • Bathrooms
      • Pools
      • Basement finishes
      • Attic finishes

      A jumbo renovation loan cannot be used to foundational or structural issues. Usually, the maximum amount of a jumbo renovation loan is 30% of the finished renovation value.

      Fannie Mae’s HomeStyle Renovation Loan

      For home buyers this renovation loan allows them to purchase a home with a budget for repairs and rehabilitation. For homeowners, this loan allows them to refinance their mortgage so they can renovate their home.  The reason this is an attractive option is that it allows everything to be in one loan and one payment which makes it easier on the homeowner or homebuyer.

      FHA 203(k) Loans

      This loan is offered by the Federal Housing Authority and often has a lower credit score requirement and a lower downpayment requirement.

      Private Home Renovation Loans

      One type of a private renovation loan is a home equity loan, where you take a loan on the equity your home has built up through the years. Another type of a private renovation loan is a HELOC, which is an equity line of credit that has a revolving balance.

      Cash-Out Refinance

      This type of rehab loan is where the homeowner refinances their home mortgage. The amount they refinance for is higher than the original loan, so the homeowner will get that difference in cash.

      How Do You Choose the Best Renovation Loan?

      The best way to know which type of renovation loan is right for you is to work with a mortgage lender like us at Strategic Mortgage Solutions. We will take a look at everything and walk with you through the entire process. Contact our office today to get started.