Renovation Loans: Convenience and Speed in Home Improvement
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New South Mortgage of Charleston SC offers Renovation Loans! Insured by the FHA, these loans “enable homebuyers and homeowners to finance the purchase (or refinancing) of a house AND the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home.”
So, if you are about to purchase (or sell!) a Fixer-Upper for X dollars, and you know it needs X dollars in renovations, this helps the buyer wrap it all up in one loan.
It’s like a Home Equity Loan, in that you are financing the same kinds of home improvements. But it’s a loan that you take UP FRONT, instead of years later after you build up equity.
One of New South Mortgage’s trusted lenders puts it this way: “Renovation Loans make it easier to help borrowers finance the home of their dreams and experience the potential benefits of instant equity! They offer borrowers a way to finance the repairs or improvements to their new or existing home with a single closing.”
There are several renovation programs available that offer a variety of options, including:
There are even options available for an investment property or to purchase a second home.
A Renovation Loan through New South Mortgage is covered under HUD/FHA “203k Rehab Mortgage Insurance.” Loans can be small, starting at $5,000. Or, they can be very extensive, like a complete rebuild – as long as the foundation stays the same.
The FHA offers further details on the types of activities covered, including:
Being federally insured, there will be special requirements for your projects, like high Energy Star and structural safety ratings.
Fannie Mae also offers Renovation Loans that provide “a convenient way for borrowers to make renovations, repairs, or improvements with a first mortgage, rather than a second mortgage, home equity line of credit, or other, more costly financing method. Eligible borrowers include individual home buyers, investors, nonprofit organizations, and local government agencies.”
So, if you are looking to remodel or rehab SOON, Renovation Loans can make that happen! To learn more about your mortgage loan options, contact New South Mortgage, a trusted Charleston SC name for 20 years!