Renovation Loans
Is your home no longer working for you? Don't hate - Renovate!
What is a Renovation loan?
What is an FHA 203(k) loan?
FHA 203(k) Limited
This is a great option for health and safety repairs, cosmetic upgrades, roofing, flooring or new appliances
- Minimum renovation cost of $5,000 and up to $35,000 maximum
- Ease of FHA qualifying
- The standard FHA 3.5% down payment applies
FHA 203(k) Standard
Allows for major remodeling and complete rehabilitation
- Minimum repair costs of $5,000 and no maximum
- Loan amounts up to $110% of the homes after-improved appraisal value
- Safety and structural repairs allowed
What is a HomeStyle Renovation loan?
More flexible than the FHA 203K or other costly financing methods, the Conventional HomeStyle Renovation Loan is a convenient way to pay for repairs or major renovations!
- Traditional strong Conventional financing
- Investment properties permitted
- Second homes permitted
Why work with MiMutual Mortgage?
Renovation loans can be complicated. As a Renovation Loan specialist, MiMutual Mortgage knows the process, closes a high number of these types of loans and has a dedicated Renovation Lending department to follow through from application to after closing. (We were even featured on the Lifetime Network “Designing Spaces” home design television show!) We offer a variety of loan options to make your vision come to life! Whether your project is as small as new carpet or as large as completely rehabbing an uninhabitable home, we can help!
Learn more about our loans below. And to see our Designing Spaces Segment and learn more about the renovation loan process, watch below:
FAQs
Qualifying for a renovation loan can be easier than you think. At MiMutual Mortgage, we offer various options, including the FHA 203(k), Fannie Mae HomeStyle®, and Freddie Mac CHOICERenovation® loans. These programs allow you to finance both the purchase or refinance of a home, plus the cost of renovations or repairs, all in a single loan.
Each renovation loan program has unique benefits and eligibility requirements:
- FHA 203(k): This loan is ideal for buyers or homeowners with more flexible credit needs, allowing you to finance a wide range of repairs or improvements.
- Fannie Mae HomeStyle®: Offers a convenient way to finance virtually any type of renovation or upgrade to your home, all under one mortgage.
- Freddie Mac CHOICERenovation®: Designed to give homeowners greater flexibility, it allows for a wide range of home improvement projects, from minor updates to major renovations.
The process involves reviewing your credit, income, and project details, but with the right guidance, it’s straightforward. Our team is here to help you navigate every step, making it as smooth as possible to secure the financing you need for your dream home project. Contact us today to find out how you can qualify for a renovation loan!
At MiMutual Mortgage, we offer several renovation loan options to help you turn a fixer-upper into your dream home. Each program has different down payment requirements, giving you the flexibility to choose what best fits your financial needs:
FHA 203(k) Loan: Minimum Down Payment of 3.5%
The FHA 203(k) loan allows you to finance both the purchase or refinance of a home and the cost of renovations with a minimum down payment of just 3.5%. This option is ideal for borrowers looking for a lower down payment and more flexible credit requirements.
Fannie Mae HomeStyle® Loan: Minimum Down Payment of 5%
With the Fannie Mae HomeStyle® loan, you can combine your renovation costs with your mortgage into one convenient payment. The minimum down payment is 5% for primary residences, making it a great option if you’re looking for more flexibility in the types of renovations you want to make.
Freddie Mac CHOICERenovation® Loan: Minimum Down Payment of 5%
The Freddie Mac CHOICERenovation® loan offers a streamlined way to finance renovations alongside the purchase or refinance of your home. This program also requires a minimum down payment of 5% for primary residences, providing an easy way to secure the funds you need for home improvements.
Each of these renovation loan options offers unique benefits, so it’s important to understand which one is right for you. Our team at MiMutual Mortgage is here to guide you through the process and help you find the perfect loan for your needs.
The FHA 203(k) Limited is a great option! Finance the cost of small repairs like peeling paint, shoring up electrical, or replace a leaking roof.
Most FHA home buyers do not have the extra cash to pay for these types of repairs. The FHA 203(k) Limited will roll the cost of these repairs into your mortgage and will get the home up to par with FHA’s health and safety regulations.
You’re in luck!
Both the FHA 203(k) and the Conventional HomeStyle renovation programs can be used in a refinance! This means, you can work with a contractor to devise a plan for a renovation and borrow based on the after-improved value of your existing home!
The answer is: with a Renovation loan!
Many homebuyers these days are adamant that they want their next home to have a pool. What if you could add a pool to any home on the market, or to your existing home?
With a Renovation loan, you can focus on finding the perfect home and add the pool. Or, if you already have a home you love, you can upgrade it!
In some markets, adding a pool significantly increases home value. It’s a win-win!
Start Your Mortgage Journey Today
You are about to begin the mortgage loan application
- Applying on the MiMutual Mortgage Online Loan Application is quick, easy, and secure! The loan application will take about 25 minutes to complete.
- Once your application is submitted, you can log back into the MiMutual Mortgage Online Loan Application to securely upload requested documents, view your loan status, and communicate with your mortgage team.
- If you have questions, reach out to your MiMutual Mortgage Loan Officer.
Your guided mortgage journey starts here!
Start Application