Find 100 homeowners and ask them how they'd pay for renovation or repair work on their homes, and you'll likely get one of two answers: they'd use their own cash (checking, savings, or retirement account) or credit, or they'd take out a second mortgage (home equity line of credit [HELOC] or regular, fixed second mortgage). The interest rate on
There is a third option very few people are aware of: the Renovation Loan. Renovation loans come in two varieties: conventional (Fannie Mae's HomeStyle) and FHA's (203[k]). While there are some differences between the conventional and FHA renovation loan programs, they both provide homebuyers and homeowners the same underlying benefits1:
1 As with any loan program, there are substantial differences between the HomeStyle and FHA 203(k) programs, each with conditions and limitations. To find out if your situation qualifies for a renovation loan, or for help determining whether or not a renovation loan is right for you, consult an experienced mortgage professional. Give us a call today!
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