Learn more about Renovation Loans
What are the hot topics you may want to reference when it comes to renovation loans? Below is a list to save for quick reference:
Q What is a renovation loan?
A A loan that allows you to finance the cost of repairs/rehab into one loan on a purchase or refinance transaction using Conventional or FHA financing.
Q What occupancy types are allowed?
A Primary, second homes, AND investment properties
Q What types of repairs are allowed?
A Nearly unrestricted. Anything from mold remediation, to structural repairs, to a new cast iron bathtub depending on program
Q What are the minimum down payments?
A Primary – 3%-5% depending on program
Second home 10%
Q How many units are allowed?
A 1-4 units for primary residences
1 unit for second homes and investment properties.
Q What is the maximum amount of repairs?
A No maximum on FHA. The only restriction is the FHA county loan limit.
Maximum on Conventional is 75% of the after-improved value. Quick tip, the program cannot be used for a tear-down so the maximum amount may never come into play
Q What if issues arise during the renovation period?
A Both loan types have a built-in reserve fund (10-20% of the repair amount) for unforeseen costs/cost overruns
Email, text or call me anytime to get connected to a renovation loan expert for more information.
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2395 Kildaire Farm Rd
Cary, NC 27518-6689