Renovation Loans

Renovation Loans Loans Are Good For:

Renovation loans are ideal for buyers purchasing a fixer-upper or homeowners refinancing to make upgrades. They’re a smart option for those with limited upfront cash who want to finance repairs into their mortgage and compare flexible solutions for home improvements.

How It Works

Renovation loans are financial products designed to help homeowners fund improvements, repairs, or expansions to their properties. These loans can cover a wide range of projects, from minor repairs to major renovations.

Eligibility Criteria

• Credit Score: Generally, a minimum score of 620 is required for FHA loans; personal loans may vary.
• Income Verification: Proof of income and employment history is necessary.
• Debt-to-Income Ratio: Typically, a DTI of 43% or lower is preferred.
• Property Requirements: The home must be the primary residence and meet specific guidelines.

Types of Renovation Loans

• Home Equity Loan: A second mortgage that allows you to borrow against your home’s equity.
• Home Equity Line of Credit (HELOC): A revolving line of credit based on home equity.
• FHA 203(k) Loan: A government-backed loan that combines home purchase and renovation costs.
• Home Style Renovation: A Fannie Mae product for financing renovations on a home purchase or refinance.