Financing for the purchase and renovation costs of a fixer-upper property
Is a Renovation Loan right for you?
Renovation Loan Quick Facts
Minimum Down Payment
Minimum Credit Score
Max Debt-to-Income Ratio
What is a FHA 203k Renovation Loan?
Purchasing a home in need of major repair or planning a remodel of your existing home can be overwhelming. But securing financing to tackle these projects doesn’t have to be a daunting task. Renovation Loans are designed for people wanting to finance both the mortgage to purchase or refinance a fixer-upper and the funds needed to repair and remodel the property all in a single loan with one application, one closing, and one monthly payment.
What are the benefits of a Renovation Loan?
Renovation Loan benefits and features:
- Purchase a home that is less-than-perfect in a great neighborhood or is a foreclosure, short sale, or other distressed property. Eliminate problems with the property before you move in.
- A Renovation Loan is a convenient, economical way to make changes with a first mortgage (purchase or refinance), rather than a second mortgage or a home equity line of credit.
- Examples of renovations, depending on your loan type: kitchen and bath updates, exterior and interior paint, flooring and carpeting, landscaping, roofing and gutters, electrical and plumbing, structural alterations and additions, and swimming pool.
- FHA 203(k) and Fannie Mae HomeStyle® Renovation Loans are available. Your Directions Loan Officer can help you decide which loan solution will help make your dream home a reality.
- Other requirements and conditions apply.
Who may benefit from a Renovation Loan?
A Renovation Loan may the right fit for you if:
- You’re a first-time or repeat homebuyer.
- You want to buy a “fixer-upper” home in a great location and get extra money to renovate it, all with one application, one loan, and one payment each month.
- You want to refinance and renovate your current home—again, all with just one loan!