How Do Renovation Loans Work?

These loans create incredible opportunities for fixer uppers!

The Renovation Loan:

This is a permanent mortgage that will allow you to purchase (or refinance) a home in need of renovation. With one application and one closing, you will have the money to renovate your home and make those improvements you need.

We base the loan amount not on what the home is worth today, but rather on what it is going to be worth after the improvements are made. The value of your home is based on an "after-improved" assessment. What your house would be worth when finished.

We simply determine what improvements you are going to make to the home, and then ask the appraiser to tell us what the home will be worth when the project is finished. The loan amount is based upon what the property will be worth when the renovation is complete. Give us a list of items to be renovated or improved and we'll ask the appraiser what your house is worth. Your maximum loan amount is based on your improvements.

The loan includes:

The cost to fix-up the property; and other costs such as consultant fees, mortgage payments during the construction period, permits, contingencies, etc. The loan amount is based upon what the property will be worth. Loans are available to Owner-occupants, and Investors for the purpose of repairing or improving one-to-four family dwellings that are at least one year old.

You may:

	Make any kind of improvement from simple remodels to complete rehabilitations.
	Convert one unit into 2-4 units or greater than 4 units into 4 units or less.
	Demolish and rebuild a new house on an existing foundation.
	Mixed use residential properties are eligible.

Eligible Improvements: Virtually any kind of improvement may be made, such as:

Interior:

	Additions
	Remodel kitchen and baths
	Finish basement and attic
	Heating, air conditioning and electrical upgrade
	New carpet tiles and wood floors
	Kitchen appliances; dishwasher, refrigerator, range
	Double pane widows, insulation and skylights
	Whole house painting

Exterior:

	Roofing, gutters and downspouts
	Patios, decks and terraces
	Fencing, new walks and driveways
	Landscaping; including trees and shrubs
	Handicapped improvements
	Well and septic installation
	Energy efficiency upgrades
	New swimming pool

We offer many different types of Renovation Loans:

	FHA 203k Loan
	Conventional Construction Loan
	Investor Renovation Loan
	Multi-family Renovation Loan

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