Did you know that the FHA 203k Loan is a just one renovation loan option? While this loan has helped lots of people turn their current home into their dream home and several others in creating the home they’d been searching for, it isn’t the only option for this kind of lending! We’ve mentioned the option of a HELOC which requires established home equity but we would be remiss if we didn’t mention that there were other mortgage products available outside of the 203k.
Another option for renovation financing is the Fannie Mae HomeStyle Loan. This loan is more akin to a conventional loan with its requirements, as with a conventional home loan it can be used for a purchase or refinance. The HomeStyle does not have a minimum requirement for renovation costs and only maxes out at 75% of the improved or after value of the home. There is a bit more freedom in the renovation options as compared to the 203k; this loan allows for luxury items like an outdoor kitchen or pool. However, the renovation must add value to the home and must be built-in.
There may be other options for you depending on your circumstances; if you would like to discuss other renovation lending options or have questions about the 203k Loan, fill out the contact me form using this link.