Renovation Financing 101

Description

Benefits of Renovation Financing

• Buyers
  1. Buy a home in any condition
  2. Renovate a newly purchased home to your needs and desires
  3. Renovation funds included in mortgage
• Sellers
  1. Sell a home in any condition
  2. Do not have to fix up a home prior to selling

Loan Products & Programs

• FHA 203K
• FHA 203K Limited
• Fannie Mae Homestyle
• Fannie Mae Homestyle Streamline
• Jumbo Renovation Loan
• Single closing vs Double closing
• Construction to Permanent
• Lot Loan

Loan Amounts & Limits

How Financing Works

• Purchase Price
• Renovation Amount
• Contingency Reserve
• Down Payment
• Loan Amount
• Interest only construction period -vs- Fully amortized end loan
• Adjustable Rate -vs- Fixed Rate

What Can Be Included in a Renovation Loan

• Architect
• Mortgage payments
• Permits
• Renovations
• Appliances