Have you thought about buying a fixer-upper, but you don’t have the cash to pay for all the repairs and upgrades? Or do you already own a home, and have some upgrades you would like to do? A renovation loan may be just what you are looking for! Homeowners can use the program to buy or refinance a home, plus roll the renovation costs into one loan.
Both FHA and conventional loans allow you to borrow on what the house is expected to be worth after the renovation is complete. That means it is important to consider upgrades that add value to the home.
For FHA’s renovation program, called the 203k Loan, the borrower hires a consultant to assess the construction plan and to perform an inspection before the money can be disbursed to the contractor. Borrowers then have up to six months to finish the project and are allowed up to five more disbursements. Keep in mind that this program is only available for your primary residence.
The Conventional program, called the HomeStyle Renovation Loan, allows you to use the money to fix or upgrade your primary residence, vacation home or rental property! The possibilities are endless!
These are excellent programs for the Yuma AZ area. All repairs will need to be done by a licensed contractor.
Contact our team for all the details. The Jackson Team has a dedicated Renovation Lending division who specializes in making this an easy and stress-free experience for you.