Discover USDA Renovation
Overview
USDA Renovation allows eligible borrowers to purchase a home they love, even if it needs some love! This program allows homebuyers to combine the purchase of a home with the cost of renovations into a single loan. Borrowers may be able to finance up to 100% based upon the ‘as-improved’ value – and even include the guarantee fee. Perfect for fixer-uppers and out-of-date homes, this program provides homeownership opportunities for even more families, and improves the housing stock in the communities where they live and work.
Basics & Benefits
- Up to 100% financing (of the as-improved value, plus guarantee fee)
- Combines financing for the purchase of a fixer-upper with the cost of the necessary renovations into one loan
- Loan is guaranteed after the loan closes, prior to completion of repairs
- When the repairs are non-structural, up to 50% of estimated materials and labor costs can be advanced to the contractor before beginning construction
- Total renovation costs greater > $200,000 require a second level review prior to approval
On Demand Processing
This feature allows you to focus on your clients and originations as eLEND handles the processing, underwrtiting, closing and funding of your loan.
Who is Eligible?
Eligibility will be determined by examining the borrowers’ income, assets, liabilities, and credit history and score, as well as the market value and condition of the property to be financed.
- Minimum FICO of 580
- 1-unit primary residence located within an USDA-eligible territory
- Property must be an existing Property that has been completed for at least one year
- New construction or incomplete construction are not eligible.
- Evidence of completion required, such as a Certificate of Occupancy or documentation from local taxing entities
- All health and safety or security issues must be part of the rehabilitation or repair work
Review program highlights, qualifications, and benefits before you get started.
