Does your home need an update? Is your kitchen’s backsplash looking old and worn? Do you need new tile in your bathroom? If so, you could qualify to receive a home renovation loan.
As a homeowner, you probably know how pricey repairs and renovations can be. You also know that coming up with the money to complete such projects can be challenging to do. Saving money is a good option, but it takes time. If there is a renovation emergency, time is not something you have.
Homes for Heroes is the most extensive network of real estate specialists in the United States. We wish to serve those who serve their communities.
Why Do We Serve You?
You are one of our amazing heroes if you’re a member of the military (present or past), a teacher, firefighter, medical professional, or police officer. Homes for Heroes would like to show their appreciation by assisting you in finding a home renovation loan.
Sign up today to discuss your loan options with an affiliated specialist in your area. Allow us to assist you in your home renovations by locating a loan that can save you money, and by finding you the most qualified professionals to complete the job.
If you desire to do the work yourself, we can locate you deals and discounts on building supplies at home improvement stores local to you.
While waiting to be contacted by a specialist who can facilitate your search for a home renovation loan, here’s a few things you might find useful about these types of loans.
What is a Renovation Loan?
A renovation loan purpose is to provide a homeowner with a large sum of money to complete renovations on their home. These can be emergency repairs, like a new roof, or an update to your kitchen and bathroom. The amount of money granted will go towards building materials, as well as the labor costs.
Requirements for Renovation Loans
To obtain a renovation loan, you need to prepare before applying. Start by making sure your credit score is at least 620 and that you have a minimum down payment of three percent. While some lenders don’t require you to have a down payment, it still helps if you do. Some lenders will want you to have a certain percentage of equity. Equity is the value of your home.
Homes for Heroes would love to assist you in preparing to apply for a renovation loan. Our specialists know different lenders and what the requirements are for each one. Sign up today to speak with an affiliate local to you.
Types of Renovation Loans
There are different types of loans available. Finding the right one that fits your situation and your home can be tricky. Homes for Heroes encourages you to allow us to locate the one that’s right for your family. Your job is hard enough, so let us tackle that part of the job for you.
Renovation loans can be government-backed or private. Fannie Mae HomeStyle loan and FHA 203(k) loan are examples of loans that are funded by government resources.
Fannie Mae HomeStyle Loan:
The HomeStyle loan is well-known and used for renovations. Borrowers can either purchase a home that needs repairs or refinance their home and receive a new mortgage rate that includes the funding for the repairs.
To have the best chances of obtaining this loan, borrowers must have a minimum credit score of 620 and must put down five percent of the home’s purchase price. You will also need to hire a contractor to give an official estimate of the repair costs before the lender will issue an approval.
This loan combines the mortgage and renovation loan. So, you won’t have to go through as much paperwork. The unfavorable element of this loan is that the money lent for the repairs goes into a separate account that pays the contractor directly. Therefore, homeowners don’t have access to those funds.
FHA 203(K) loans:
Offered by the Federal Housing Administration, it requires a lower down payment than comparable loans. Two different types of FHA 203(K) loans exist: limited and standard. The limited FHA loan exists for updates that are mainly cosmetic. This loan caps its funds at $35,000. The standard FHA loan is for more substantial remodels and requires you to hire a consultant who is qualified to oversee all the work you do, from the first steps of planning to the result.
Private loans are referred to as equity loans or second mortgage loans. The interest rates on these loans will never fluctuate, and the payment will remain the same until it’s paid off. These loans require you to pledge your home as collateral. What this means is that if you fail to make the payment, the lender can take over ownership of your home.
Let Us Help
Homes for Heroes can give you guidance in finding a loan that is right for your family. Don’t hesitate to ask us any questions you have about this process. Our affiliates have access to many different types of lenders and can guide you through every step.
Whether an emergency home repair, cosmetic update, or extensive remodel, renovation loans can help you complete the project. The loans discussed above are just a few of the many options available. Homes for Heroes can assist you in a more extensive search for one that fits your needs. With our network of dedicated affiliates, there’s no doubt that we can help you in locating and obtaining a home renovation loan that will give your kitchen that perfect backsplash or fix those leaks in your roof.
With all the different loans that exist, it can be confusing to know which one would be the best match. Homes for Heroes was founded to make this process easier for you and save you the most money as possible on your home renovation. Give us a call today to see how Homes for Heroes can help you get a home renovation loan and save you money in the process.