Renovation

RENOVATION LOANS

FHA Standard 203(k) Rehabilitation Mortgage

The FHA Standard 203(k) Rehabilitation Mortgage is used to purchase or refinance a home that needs structural rehabilitation or major repairs in excess of $35,000. A HUD Consultant is required for FHA Standard 203(k) transactions.

 

FHA Limited 203(k) Rehabilitation Mortgage

The FHA Limited 203(k) Rehabilitation Mortgage is used to purchase or refinance a home that needs minor and/or non-structural rehabilitation where total cost of improvements do not exceed $35,000, unless property is in a Qualified Opportunity Zone (QOZ); Properties located in Qualified Opportunity Zones (QOZ) may have total renovation and repair costs up to $50K. To determine if a property is in a QOZ, please refer to the Opportunity Zones Resources provided by the U.S. Department of Treasury Community Development Financial Institutions (CDFI) Fund.

A HUD Consultant is not required for FHA Limited 203(k) transactions.

 

Freddie Mac CHOICEReno eXPress®

CHOICEReno eXPress, an expansion of the Freddie Mac CHOICERenovation® mortgage program, is a single-close loan that enables borrowers to purchase a home that needs smaller-scale repairs, or refinance their existing home and include the necessary funds for small-scale cosmetic repairs in the loan balance.

PROGRAM HIGHLIGHTS

  • Purchase and refinance (no cash-out)
  • Does not require borrower to get interim construction financing
  • No minimum dollar amount for repairs
  • Repairs up to $35,000
  • Allows renovations purchased from a home improvement store
  • Minimum FICO of 620
  • • Can be combined with affordable mortgage products with low down payment such as Home Possible, HomeOne and super conforming mortgages

Fannie Mae HomeStyle® Renovation

The Fannie Mae HomeStyle® Renovation Mortgage option is a cost-effective way for borrowers considering moderate home improvements to make repairs and renovations with a single-close first mortgage.

The Fannie Mae HomeStyle® Renovation Mortgage is a single-close loan that allows for the purchase of a home in need of repair or refinance an existing loan to include funding for renovation. The loan amount is based on the “as-completed” value of the home. There is no minimum dollar amount or required improvements but repairs and/or upgrades must be permanently affixed and add value to the real property.

  • Renovations and repairs up to $100,000
  • There may be a period during renovation where the home may be uninhabitable as determined by the HUD Consultant
  • Repairs must be non-structural (see ineligible repairs on program matrix)
  • Eligible property types:
  • 1-4 Unit Primary Residences
  • 1 Unit Second Homes
  • FNMA Approved Condos
  • PUD’s
  • Multi-wide Manufactured Homes

 

 

VA Renovation

The VA Renovation Program is designed to help those who serve our country repair or upgrade their home with the low rates VA lending programs offer. Minor renovation costs can be included in the loan amount of a purchase, or for repairs being done to an existing home with equity.

Program overlays and eligibility during the pandemic include:

  • Conforming Loan Limits only
  • If Refinance transaction, limited to 90% LTV
  • Home must be habitable during renovation

All other program guides apply including but not limited to:

  • Maximum renovation cost of $100,000
  • 620 minimum FICO score
  • Primary Residence Only
  • 1 & 2-unit homes or Manufactured Homes
  • Repairs must be minor remodeling or cosmetic in nature (see ineligible repairs on program matrix)
  • Renovations greater than $50,000 require a 203(k) HUD Consultant
  • Construction must be completed within nine months of closing, and
  • Only one General Contractor may be used, registered with the VA and carry sufficient insurance through a current general insurance liability policy.

 

USDA Renovation

USDA Renovation gives borrowers an option to purchase a home and include the cost of necessary renovations, in a single close. With up to 100% financing, this affords borrowers the opportunity to make repairs or bring the home up to date. This is an excellent choice for borrowers in rural areas.

Program Highlights

  • 100% financing program
  • Allows borrowers to finance the cost of repairs to improve an existing dwelling at the time of purchase
    (Property must have been completed for at least one year. New construction or incomplete construction are not eligible)
  • Borrowers retain cash reserves after closing since repairs are made using loan funds

Eligible Terms & Property Types

  • Purchase only (refinance transactions are not permitted)
  • 30-year, Fully Amortizing Fixed
  • 1-unit primary residence
  • PUDs (Planned Unit Development)
  • Existing property that has been completed for at least one year