Home Renovation & 203K Loans

What are Renovation Loans?

Considering a distressed property, fixer-upper, or home in need of some repairs? Homes that need a little work or updating can often be a great bargain turned investment, but some potential buyers shy away from these deals, afraid they can’t afford an out-of-pocket expense for renovations. eLEND’s available home renovation loans allows financing of the purchase price as well as the cost of repairing or renovating several elements of the home in one mortgage loan.

Benefits
Available Programs
Allowable Improvements

Benefits

Benefits of Renovation Loans

Take out one loan to both purchase and renovate a home, also available for refinancing
Low mortgage rates and low down payment requirements for qualified borrowers
Potential to earn equity quickly by purchasing a home below market value and repairing or remodeling
These loans facilitate the improvement of distressed properties, which contribute to the betterment of neighborhoods and communities
Renovate a property that is above the conforming loan limit

Available Programs

Available Renovation Loan Programs

FHA Standard 203(k) Rehabilitation Loan – For homes in need of extensive repair or renovation totaling more than $35,000, possibly including structural repairs
FHA Limited 203(k) Rehabilitation Loan – For homes in need of minor repairs at an expense of up to $35,000
FHA Repair Escrow 203(b) – For purchasing a home directly from HUD that needs cosmetic repairs not to exceed $35,000
FHA One-Time Close (OTC) – A one-time close solution financing the construction, lot purchase, and permanent loan for new manufactured, stick-built properties, and modular homes
Fannie Mae HomeStyle® Renovation Loan – For those looking for a conventional renovation mortgage loan option with competitive rates
Refinance Renovation Loan – Additionally, you can refinance your existing mortgage plus the cost of repairs and renovations with one of eLEND’s renovation loan options

Allowable Improvements

What improvements are allowed with a Renovation Loan?

The list of allowable improvements differs from program to program, but most Renovation Loan programs include:

Upgrade or modernization of central air/heat, plumbing, and electrical systems
Repair or replace well and septic systems
Repair termite or moisture damage
Remodeling of kitchen and baths
Addition or replacement of exterior decks, patios, terraces, and porches
Permanent hardscape such as driveways, walkways, retaining walls, and fences

Want to find out if your dream renovation project is covered by a home renovation loan? Call one of our mortgage loan professionals at 1-800-634-8616 today.

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Renovation Loans

Learn About Our Renovation Loan Options