Buying a Fixer Upper
What is a Renovation Loan
A renovation loan such as an FHA 203(k) or a FannieMae HomeStyle® loan lets you purchase or refinance and rehabilitate a property with one loan closing. The projected rehabilitation costs are held in an escrow account and disbursed as work is completed and inspected. The loan amount is based on the lower of the projected market value following repairs or purchase price plus renovation costs.
FHA 203K
An FHA 203k loan allows you to borrow money, using only one loan, for both home improvement and a home purchase. These loans can also be used just for home improvements. FHA 203k loans are guaranteed by the FHA, which means lenders take less risk when offering this loan. As a result, it’s easier to get approved (most likely with a lower interest rate).
You just love the house, except for that leaky pipe or that kitchen that is just too small. Maybe it needs a new roof or siding. For that house that is almost perfect, we have the perfect solution. US Mortgage Corporation’s 203(k) Rehabilitation Loan is a mortgage and a home improvement loan all in one. Now you can buy or refinance a property that needs renovations, repairs or remodeling. You can easily finance both the purchase and the improvements in one easy step.
FannieMae Homestyle
The Fannie Mae HomeStyle® Renovation Mortgage was created to help consumers purchase homes that need work from the very beginning. With this type of mortgage, buyers can bundle the costs of purchasing a home with the expense of remodeling and make a single monthly mortgage payment. HomeStyle mortgages also aim to help lenders cope with constrained housing supply and evolving borrower needs, since they allow buyers to purchase homes they may not be able to buy without additional financial help to cover the cost of renovations. The best part is, the Fannie Mae Homestyle® Renovation Mortgage can be used on any type of renovation project, provided the improvement is permanently affixed to the property.
For the House that is Almost Perfect, we have the Perfect Solution.
A Mortgage & Home Improvement Loan
All In One | Purchase or Refinance
Eligible Renovations
- Remodel the kitchen or bath
- Renovate or add a room
- Paint the house or add siding
- Add a porch, deck, or patio
- Replace a leaky roof
- Put in new flooring, carpeting, or tiling
- Conserve energy with new windows
- Swimming Pool
- Landscaping
- Dormers
- Outdoor Kitchen and/or Fireplace
- Built-in Spa
- Major structural alteration
- & More… Talk with a Licensed Loan Officer
1.
Get Pre-Approved
This is the time to get in the know. A pre-approval will give you an advantage when you find your perfect home. We can tell you what you need to get pre-approved, so you know the exact loan amount you qualify for, what your monthly payment will look like, and how much taxes and insurance will be. With a pre-approval, the loan process will be smoother and your offer will be stronger.
2.
Loan Application
Your application will provide a complete picture to loan investors of your assets, debts and what you are buying. It will take into account documents such as pay stubs, proof of income, tax returns, employment history, and information on all debts, assets, and sources for down payments. Don’t worry, we will request these documents as applicable for your loan application so that you can be fully prepared.
3.
Select Your Loan Program
Fixed rate? Adjustable? FHA? There are multiple loan options that may fit your unique needs, and we can help you choose. Are you looking for the consistent rates and payments that a fixed rate loan can provide? Do you want the short-term benefits of lower rates that an adjustable rate loan can bring? Our extensive portfolio of loan options means you have more options available to get just what you need.
4.
Processing and Underwriting
Your loan has specific investor guidelines that must be met, and an underwriter will review your documents to be sure that you meet them. While an underwriter reviews your file, an appraisal will be ordered on the home. Additional information may be requested, so don’t panic if you have to turn in more documents. That’s just the underwriter working hard to get your final approval.
5.
Loan Approval
Before your loan is approved, you will receive pre-approval and a list of closing conditions that need to be met. These conditions can include verification that your employer is current and proof that homeowner’s insurance has been obtained. Once closing conditions have been satisfied, the underwriter issues a clear to close. Congratulations, your loan has been approved!
6.
Close the Loan
With an approved loan, you are on the home-stretch towards closing. The lender will send closing documents to a title company that draws up paperwork and arranges for signing of documents. Once the documents have been signed and funding conditions have been met, the title is recorded and the process is complete. You are a proud owner of your new home, and the keys are yours!
