Renovating with Home Improvement Loans
Download our Renovation Loan Comparison sheet here.
Are you ready to take on that home improvement project you've been talking about, but you don't have the home equity you need? Or, maybe you're looking at a new home purchase, but the property needs a little "TLC" to get move-in ready. Whatever your renovation or home improvement needs, AmeriFirst is here to help.
Our Renovation Loan Programs
Two home renovation mortgage programs - the FHA 203(k) and Fannie Mae HomeStyle Loans - offer good financing options for buyers and homeowners seeking fixer-uppers or wanting to renovate their current homes. Both programs enable buyers to borrow based on what the house is expected to be worth after the home rehab is completed. Homeowners can also use either program to refinance their existing mortgage, plus the renovation costs, into one convenient loan.
These loans can be particularly appealing to first-time homebuyers with limited budgets who want to live in a particular neighborhood but do not have the savings for both a large down payment and a renovation.
FHA 203(k) Loan Information
One of the most popular and diverse home improvement loans is the the FHA 203(k) Renovation loan. This loan program is attractive for several reasons:
1. You can buy and remodel a fixer upper or make upgrades to your existing home, from minor repairs to major renovations, all with one loan.
2. You can borrow the needed funds based on what your house is expected to be worth after the home renovation is completed.
3. You do not need a large down payment.
FHA 203(k) Limited & Standard
There are two types of FHA 203(k) loans: a standard option and a limited option. Which one is right for you depends on how much you intend to spend on your renovation and what you intend to do.
Take advantage of our free 203(k) Loan Survival Guide available for download. We also have several 203(k) blog posts that can help you determine if this loan is a good fit for your needs.
AmeriFirst is proud to be recognized as a top ten 203(k) lender in the nation for our experience in renovation lending. Let us know if we can help!
HomeStyle Renovation Mortgage
The HomeStyle Renovation mortgage enables a borrower to take out a mortgage or a limited cash-out refinance mortgage and receive funds to cover the costs of repairs, remodeling, renovations or energy efficient improvements to the property.
There are no required improvements or restrictions on the types of repairs allowed or a minimum dollar amount for the repairs. Repairs or improvement, however, must be permanently affixed to the real property and add value to the property.
With a 5% down payment you can add your taste & style to a house to make it your home with remodeling projects like a new kitchen, bathroom, room addition or energy efficient upgrades. HomeStyle Renovation allows you to buy a home and fix it up, or refinance and remodel your current home.
- Purchase or refinance & remodel
- 5% minimum down payment for primary, single-family residences (10% for second homes)
- You can use gift funds for down payment & closing costs for owner occupied, primary residences after you contribute a minimum 3% down payment
- 3% seller contribution allowed
- Cosmetic and structural renovations allowed
- Allowable improvements can include landscaping, appliances, swimming pools and more