Fixer-Upper / Renovation Home Loans

Renovation Loans help you compete with the cash buyer because you can do the renovation AFTER close of escrow. 
Non-Renovation loans require the property to be “livable” BEFORE close of escrow, meaning that all systems and components have to work. Smart sellers will take your offer instead of low-ball cash offers. Renovation loans are also available for refinances.

Primary Residence FHA 203k (Maximum loan amount $314,827. Purchase price can be higher) 600 minimum credit score.

• 3.5% down (of the purchase and repair costs of the property). The property must be at least one-year old.
• Four-plex’s are eligible as long as you live in one of the units.
• Most repairs/renovations are eligible with a minimum renovation cost of $5000.
• You can also refinance your existing house and get money for renovation.
• You can typically borrow up to 110% of the property value.
• The renovations that qualify include: modernization and improvements, elimination of health and safety hazards, changes that improve appearance and eliminate outdated areas, reconditioning or replacing of: HVAC, plumbing, roofing, electrical, flooring, painting, roof, major landscape work, creating accessibility for a disabled person, making energy conservation improvements, MORE.

Primary Residence Fannie Mae HomeStyle Renovation (Maximum loan amount $484,350. Purchase price can be higher) 620 minimum credit score

• 5% down (of the purchase and repair costs of the property)
• *3% down for first-time buyers, meaning you haven’t owned property in the last 3 years.
• Any type of renovation or repair is eligible, as long as it is permanently attached to the property.
• Borrowers may choose their own contractor.
• Plans/specifications must be prepared by a General Contractor or Architect. The plans must describe all work to be done. 
• Borrowers can perform the renovation work themselves at the lender’s discretion, provided that:
  The Do-It-Yourself part does not exceed 10% of the as completed value. 
• The property is a one-unit owner-occupied home, and not a manufactured home.
• The reimbursement is limited to the cost of materials or the cost of properly documented contract labor (sweat equity may not be reimbursed).
• Renovations should be completed within one year.

Rental (Investment) Properties Fannie Mae HomeStyle Renovation (Maximum loan amount $484,350. Purchase price can be higher)

• 20% down (of the purchase and repair costs of the property). 
• One to four-unit primary residences, one-unit second (vacation) homes, or one-unit investment (rental) properties, including units in condos, co-ops, and PUDs.
• Any type of renovation/repair is eligible, as long as it is permanent. Renovations should be completed within one year.
• Borrower chooses their own contractor to perform the renovation. Lender must review the contractor hired by the borrower to determine if they are adequately qualified. Borrowers must have a written contract with their contractor. 
• Plans and specifications must be prepared by a General Contractor or Architect. The plans/specifications must describe all work to be done and provide an indication of when various jobs or stages of completion will be scheduled.
  

  
  “Do-It-Yourself” Work
  

Borrowers can perform some of the renovation work themselves at the lender’s discretion, provided that:  

• The Do-It-Yourself financing does not exceed 10% of the as completed value. Note: Inspections are required for all work items that cost more than $5,000.
• The property is a one-unit owner-occupied home, and not a manufactured home.
• The reimbursement is limited to the cost of materials or the cost of properly documented contract labor *Tahiti*(sweat equity may not be reimbursed).

 702-326-7469 – Talk/Text  or email DSherbondy@AllWestern.com