Are you interested in buying a fixer-upper or remodeling your current house to make it feel more like home? Primary Residential Mortgage, Inc. offers renovation loans that could help you make your goals a reality. Keep reading to learn about renovation loan basics.
Renovation loans provide additional funds to cover renovations or large remodeling projects when you buy or refinance a home. The loan is combined with the mortgage or refinance loan so you have only one monthly payment.
A renovation loan lets buyers take out max financing based on the “after-improved” value of a home, or how much the house is estimated to be worth after the renovations are complete. That gives them more room in their budget.
We offer three types of renovation loans.
Your Loan Officer will talk to you about your specific needs and goals and help you determine the right loan for you.
The FHA Limited 203(k) loan is a government-insured loan program that lends buyers up to $35,000 on top of their mortgage to make minor changes to an existing home.
This is a good option if you need funds for installing new appliances, repairing decks, upgrading roofs and fixing things like drainage systems, HVAC systems, electrical systems and plumbing.
The FHA Standard 203(k) loan provides renovation financing for homes that require major renovations, structural repairs or other changes exceeding $35,000. It covers everything from minor rehabilitations to complete tear-downs.
As long as the foundation remains in place, a home can be demolished or razed as part of rehabilitation and still be eligible for a Standard FHA loan. If the house is uninhabitable during construction, borrowers can finance up to six months of mortgage payments.
The HomeStyle Renovation loan is similar to FHA loans, but it allows buyers to finance luxury items like swimming pools, detached garages or gazebos in addition to basic renovations. It can be used for a primary residence, secondary residence or investment property.
Like the FHA Standard 203(k) loan, the HomeStyle Renovation loan lets borrowers finance six months of mortgage payments if the house is uninhabitable during construction.
A renovation loan could be just what you need to turn your house into a home you’ll love. We’ll meet with you to discuss your goals, finances and ideas and help you find the right financing for you.
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by Primary Residential Mortgage, Inc. NMLS#: 919520 Utah DRE Mortgage Office License # 8335595. MLO 0117736. MC3094-122. All loans subject to credit and property approval. PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.
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