Renovation Loans
Are you dreaming of updates and renovations to your current home or one you are looking to purchase? Whether you have a large or small renovation project in mind, our knowledgeable team is dedicated to providing guidance and support at every step of the process. Our Quaint Oak mortgage bankers work closely with you to understand your renovation goals and tailor a loan solution that meets your requirements. Together, we can find the right loan for creating your dream home.
Renovation Loans: Create Your Dream Home
Renovation loans offer an opportunity for homeowners and homebuyers to make improvements to their existing properties or leverage a deal on a purchase by financing the cost of repairs. These loans provide the flexibility to fund a wide range of renovation projects, including but not limited to:
- Remodeling a Bathroom
- Renovating a Kitchen
- Constructing a New Addition
- Expanding an Existing Room
- Restoring an Older Home
- A “Fixer-Upper” Property Rehab
- Installing a Pool
At Quaint Oak Mortgage, we provide two popular renovation loan options: the FHA 203k loan and the Fannie Mae HomeStyle loan. Each of these loans has its own set of benefits and guidelines. Our knowledgeable team members are here to assist you in comparing these options and selecting the one that best suits your needs.
FHA 203k Loans
FHA 203k loans are a renovation program backed by the Federal Housing Administration. These loans are specifically designed for borrowers who are seeking funding for repairs and renovations within the loan limits set by the FHA for their primary residence.
There are two types of FHA 203k loans: the standard 203k loan and the limited 203k loan. The type of loan you choose will depend on the size and scope of your renovation project.
The standard FHA 203k loan is best for more extensive renovations, including structural repairs, major renovations, or projects that require engineering or architectural drawings. This loan option allows for higher renovation costs to be financed and provides more flexibility in terms of the types of repairs and improvements that can be financed.
The limited FHA 203k loan is designed for smaller-scale renovations that do not require structural changes. This loan option has a lower limit for repair costs and is ideal for minor repairs, cosmetic upgrades, or energy-efficient improvements.
Fannie Mae HomeStyle Loans
Fannie Mae HomeStyle loans are conventional renovation loans that are subject to conventional loan limits. Similar to FHA 203k loans, these loans are designed to assist borrowers in renovating their homes. However, Fannie Mae HomeStyle loans offer certain advantages that go beyond the limits of FHA 203k loans.
With a Fannie Mae HomeStyle loan, borrowers have the flexibility to finance not only necessary repairs but also additional upgrades, such as the installation of a pool or luxury improvements. This loan program allows borrowers to enhance their homes according to their preferences and lifestyle.
Another advantage of the Fannie Mae HomeStyle loan is its applicability to various types of properties. It can be used for primary residences, secondary homes, or even investment properties. This versatility makes the loan option attractive to borrowers with different homeownership goals.
Renovation Loans to Fit Your Goals
Quaint Oak Mortgage’s experienced team can provide further guidance for renovation loans, helping you find an option that fits your goals. We will assist you in understanding the specific requirements, loan limits, and benefits associated with each option. Contact us today to explore how an FHA 203k loan or Fannie Mae HomeStyle loan can help you achieve your renovation dreams.