Fix up your fixer upper home with a Renovation Loan. If you have found the perfect home but it needs renovation, you can purchase the home and roll the costs of the renovation into your loan.

If you have ever thought about buying a home and fixing it up to make it yours, a renovation loan or home improvement loan could be the mortgage for you.  

What is a Renovation Loan?

Available for buying or refinancing a home, a renovation loan is a mortgage loan where additional funds to renovate a home are rolled into one loan.  The new loan is based on the home’s estimated value after the renovations are complete, allowing you to borrow more than a traditional home equity loan.

These loans offer several advantages over some traditional mortgage loans:

• Avoid depleting savings or maxing out credit cards
• Build equity faster by increasing the value of the home
• Low interest rate and one monthly payment

How does a renovation loan work?

A renovation loan works the same way as a traditional loan but adds the renovation costs and requirements.  Most renovation loans require that you live in the home as your primary residence and have limits on the amount of money you can borrow as well as what kind of improvements you can use it for.  If the renovation project will not be used as a primary residence, take a look at our Fix & Flip program designed for investors.

Types of Renovation Loans?

There are several renovation loan programs available for owner-occupied properties, these include:

• FHA 203k Loan 

Insured by the Federal Housing Administration, FHA 203k loans are a good choice for buyers who need a low down payment or have less than stellar credit scores.  Available in Limited and Standard options, they can be used to purchase a one-to-four-unit home, condominium, or a mobile or manufactured home.

• Fannie Mae HomeStyle Renovation Loan

This loan is a great choice for homeowners with good credit and a sizable down payment.  Renovation funds can be used for repairs, remodeling or energy efficient upgrades for primary, vacation and rental properties.

• Freddie Mac CHOICERenovation & CHOICERenovation Express

Similar to the FannieMae Homestyle, CHOICERenovation is Freddie Mac’s renovation mortgage program.  CHOICE is available in two versions depending on the scope of the renovations.

• Cash-out Mortgage Refinances

One of the most common choices for financing home improvements, a cash-out mortgage lets you refinance your home for more than you owe. You can then draw on the extra money to pay for your renovations. Offering a fixed interest rate, a cash-out refinance loan can lower your interest rate and/or your monthly payments.

• Home Equity Loans & Lines of Credit

Access the money you’ve invested in your home while you’re still living in it. Home equity loans and lines of credit are personal loans that use your home as collateral.  Often used to finance college tuition, debt consolidation, or new business ventures as well as home improvements, home equity loans let you borrow up to 90% of your home’s market value minus the amount you owe on the mortgage. It can be a smart choice if you have a substantial amount of equity built into your home and want to borrow a large lump sum for bigger renovation projects.

Where are they available?

Available anywhere in the states we operate in.  Our dedicated teams of local mortgage brokers are ready to help you find the home loan that best suits your needs.

• Renovation Loan Georgia
• Renovation Loan Alabama
• Renovation Loan Florida
• Renovation Loan North Carolina
• Renovation Loan South Carolina

Ready to get started?

If you are interested in learning more about our renovation loans, we are here to answer all of your questions.  We will walk through the numbers and the process, from application to closing.

Complete our Quote Request below or call us at 404-303-7411 to take the first step.