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Renovation Loans

A renovation loan is a type of loan designed to provide financing for home improvements or renovations. These loans allow homeowners to borrow funds to update, remodel, or repair their existing homes. Renovation loans come in various forms, and the specific terms and conditions can vary depending on the lender and the type of loan. 

Key features of Renovation Loans:

  • Home Equity Loan: Similar to a HELOC, a home equity loan allows homeowners to borrow against the equity in their homes. However, it provides a lump sum upfront, and the borrower pays back the loan in fixed monthly installments.

  • FHA 203(k) Loan: This government-backed loan is insured by the Federal Housing Administration (FHA) and is specifically designed for homebuyers and homeowners who want to finance both the purchase or refinancing of a home and its renovation costs.

  • Fannie Mae HomeStyle Renovation Loan: This conventional loan program allows borrowers to finance the purchase of a home or refinance an existing mortgage while including funds for home improvement projects. It's offered by Fannie Mae.

  • Freddie Mac CHOICERenovation Mortgage: Similar to Fannie Mae's HomeStyle, this program from Freddie Mac allows borrowers to finance the purchase or refinance of a home along with eligible renovation costs.

  • Personal Loans: Unsecured personal loans can also be used for home renovations. These loans are not tied to the home's equity, but they may have higher interest rates compared to secured options.

  • Construction Loans: For major renovation projects or even the construction of a new home, a construction loan may be used. These loans often have a draw schedule, and funds are released in stages as the work is completed.

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It's important for borrowers to carefully consider their financial situation and the specific terms of the loan before choosing a renovation loan. Some renovation loans may have restrictions on the types of improvements that can be made, and borrowers should be aware of any costs, fees, and interest rates associated with the loan. Give me a call so I can help your and your family determine the most suitable renovation loan for your needs.

Contact

Melanie Taliaferro, mortgage loan officer based in Austin, Texas

Branch Manager - NMLS #228566

melaniet@fairwaymc.com

taliaferroteam@fairwaymc.com

512-825-1196

Melanie Taliaferro

Fairway Independent Mortgage Corporation, Texas, Florida, Washington, New Mexico
Mortgage Loan Officer, Home loans
Top mortgage loan originator in Texas
Female empowerment
Women owned and lead business
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