Renovation loans AKA Fixer-Upper mortgages are a superb option for homeowners who want to make repairs or improvements to their current homes, or for homebuyers who want to purchase a property needing some work. There are two renovation loan products – FHA 203k and Fannie Mae HomeStyle Renovation.
The FHA 203k loan is a government-insured loan that will have Mortgage Insurance (MI) that will help buyers purchase and renovate a home in one transaction. This loan allows buyers to finance both the purchase price of the home and the cost of the renovations into one mortgage.
Fannie Mae HomeStyle Renovation is a conventional loan that is similar to the FHA 203k loan. However, unlike the FHA 203k loan, the HomeStyle Renovation loan is not government-backed and has higher loan limits. This loan is also available to both current owners and homebuyers.
Both the FHA 203k and the Fannie Mae HomeStyle Renovation loans offer some advantages to homeowners and homebuyers. These loans are designed to help you finance your home renovations, and they offer the convenience of one loan, lower down payments, and flexible eligibility requirements. If you want to improve your home, or buy a fixer-upper, a renovation/fixer-upper loan may be just the ticket.
Renovation Loans help you compete with the cash buyer because you can do the renovation AFTER close of escrow. Regular 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 a low-ball cash offer.
Primary Residence FHA 203k. Maximum loan amount $472,030.
Primary Residence Fannie Mae HomeStyle Renovation (Conventional) – Maximum loan amount $726,200 in most areas. 640 minimum score.
Rental (Investment) Properties Fannie Mae HomeStyle Renovation – Maximum loan amount $726,200 in most areas.
A few years ago, I built my own house from the ground up without a contractor. If you use me for your Renovation Loan, you get my free advice even after the loan closes. Plus, I’m known and respected by many listing agents, so my name on the Pre-Approval letter carries some weight.
If you are interested in seeing how I built my house you can watch Dan Builds a House.
Senior Loan Officer
All Western Mortgage
(established in 1981)
“Dan The Loan Man”
702-326-7469 talk/text every day
Dan’s Licensing: NV MLD 45649, CO-100516554 CA-DFPI313289 NMLS 313289
All Western Mortgage, 8345 W Sunset Rd #380 Las Vegas, NV 89113
702-326-7469- TALK OR TEXT | | 702.369.0905 – Switchboard (Ask for Dan)
Company NMLS# 14210, NV Division of Mortgage Lending Lic# 204, CA Dept of Corporations Lic# 603F053, CA Dept of Real Estate Lic# 01893025, CO Division of Real Estate.