We’re all about helping our customers get to a better place—both financially and in terms of their living situations. We offer several options for home renovations that allow you to buy or refinance a home that needs a little TLC. Whether you choose our FHA 203(k), HomeStyle Renovation Loan, or our FHA 203(k) Streamline Loan for a new purchase or refinance, we can help you with all the details. Let’s go through the options.
FHA 203(k) Full Renovation Loan
Under this program, a homebuyer can borrow up to 110% of the after-improved value of their home to pay for an assortment of projects designed to rehabilitate and repair single-family properties. A homeowner can also use this program to make larger renovations and upgrades to their current home. Some of the details of the FHA 203(k) Renovation Loan:
- Structural alterations and reconstruction
- Reconditioning or replacement of plumbing, heating, air conditioning and electrical systems
- Changes to aesthetic appeal (for example, new exterior siding)
- Elimination of health and safety hazards (get rid of that lead paint!)
- Roofing, gutters, downspouts
- Flooring, tiling, carpeting
- Appliances (must be in addition to at least $5,000 in basic home repairs)
- Energy conservation improvements
- Improvements for accessibility for persons with disabilities
- Major landscape work and site improvements
FNMA HomeStyle Renovation Loan
This renovation product allows borrowers to include financing for home improvements in a purchase or refinance transaction of an existing home. Let’s take a look at the details.
- Renovations must be permanently affixed to the property and add value (kitchen, bathroom, room addition)
- Only a registered, licensed and reputable general contractor can complete the renovations and must submit itemized plans and specifications
- Condo renovations are limited to interiors and must be cleared with the HOA
- Cost-effective way to renovate or improve a home
FHA 203(k) Streamline Loan
Under this program, a homebuyer or homeowner can borrow up to $35,000 in additional financing to help pay for an assortment of projects designed to rehabilitate and repair single-family homes. Here are the details.
- Roofs, gutters, downspouts
- Existing flooring
- Interior/exterior paint
- Weatherization (storm windows, doors, insulation)
- Existing HVAC systems
- Existing plumbing and electrical
- Remodel minor repairs that are not structural (kitchen, bathroom)
- Install new appliances
- Improve accessibility for persons with disabilities
For those who prefer a chart, here you go.
Be sure to ask your Loan Officer about each of these products and determine what’s best for you. As with any loan product, there are limitations and some restrictions so it’s important to get a full understanding so you can plan for your updated home.