Are you in the market to purchase a foreclosure that requires either minor or extensive renovation? Have you found your dream home in the perfect location, but it needs some updates? Are you selling your current home at a reduced price because it needs a new kitchen or roof?
Perhaps you're interested in remodeling your current home, or adding a room to accommodate a growing family. Perhap you want to improve the energy efficiency of your residence or the home you want to purchase.
Whatever your scenario, we have a loan for you! Several options are available, both government insured and conventional, which will finance the value of the home plus the cost of the renovations.
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FHA 203 (K) renovation programs
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The Streamlined 203(k) loan allows the borrower to make minor cosmetic changes to a property, up to $35,000.
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The Standard FHA 203(k) loan allows substantial structural improvements, repairs, and remodeling. You can even rebuild from the existing foundation up!
FNMA HomeStyle Renovation program
The FNMA HomeStyle Renovation mortgage provides a convenient way for borrowers to make renovations, repairs, or improvements. These costs can total up to 50 percent of the "as-completed" appraised value of the property with a first mortgage. You do not then need to resort to a second mortgage, home equity line of credit, or other more costly financing method. Eligible borrowers for this program include both individual home buyers and investors.
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Benefits of the FNMA HomeStyle Renovation Program
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Cost-effective way to renovate or improve a home
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A single mortgage means lower closing costs
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Typically you will obtain a lower interest rate on a first mortgage, than you will with a second mortgage, home equity line of credit, or other financing method
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The loan amount is based upon the “as-completed” value of the home, or the cost basis (purchase loans), whichever is less
Choosing the Right Mortgage Loan Program
We can't emphasize enough how important it is to work with a knowledgeable Mortgage Professional. Every homebuyer needs an industry pro that understands the many loan programs available, and is able to determine which loan is appropriate for a particular borrower.
We realize there are many different types of borrowers who seek affordable home financing, and we understand that our job is to locate affordable financing that works for you.
