Designed for the Renovation
Renovation Loans are designed for people wanting to finance both the mortgage to purchase or refinance a fixer-upper.
- One loan, one closing, and one payment for both the mortgage to purchase or refinance the home and the funds needed for major and minor improvements
- Improvement funds are held in an interest-earning, FDIC-insured escrow account and disbursed as the work is completed (maximum of five disbursements)
- Competitive long-term Fixed or Adjustable Mortgage Rates
- Low down payments starting at 3.5% of the property acquisition and repair costs
- Less-strict FHA qualification requirements
- Can finance up to six months’ mortgage payments into the loan if the home is uninhabitable during rehab
- Include funds to cover potential expenses and fees
- May finance the cost to rent another home during renovations
- Numerous eligible properties, including one- to four-unit single-family dwellings, condominiums, manufactured housing, and mixed-use properties (residential with commercial); owner-occupied only
- Six months are allotted to complete the work
