Renovation Mortgages

So you found a great house but in order to make it the perfect home you need to make some upgrades. Our renovation mortgage options allow you the ability to buy and renovate your house so you can make it your perfect home.

A typical renovation mortgage will allow you to finance a percentage of the purchase price of your home as well as the improvements you plan to make to the home. The amount you can finance will depend on a number of factors.

Conventional Renovation Mortgage

• Conventional renovation mortgages allow you the option to purchase a home and finance improvements or to refinance an existing home you own with the ability to finance improvements.
• Most programs allow you up to 12 months to complete the work. Specific program options may vary.
• Payments are based on principal and interest from the point of closing and are based on the total loan amount.
• Available for primary residence, second homes and investment properties.
• Fixed and Adjustable rate options available.

FHA Renovation Mortgage

• Primary residence only.
• Scope of work may be limited and not all improvements may be eligible depending on which FHA renovation option you select.
• In most cases, a general contractor is required to complete the work on the home.
• Depending on the program selected, limits to the amount of improvements allowed may be applicable.
• Fixed and Adjustable rate options available.
• In addition to a contractor, an FHA consultant may be required depending on the FHA renovation option selected.

Large Scale Renovation Mortgage

• Large scale projects that exceed our standard conventional renovation program are available.
• Flexible construction terms
• Available for primary residence and second homes.
• Fixed and Adjustable rate options available.
• A general contractor is typically required.
• Interest only payments during the construction term. Upon completion of construction, your payments will increase to reflect principal and interest.

Some other considerations to consider when doing a renovation type of loan:

When purchasing a home your final loan amount will typically be based on the lower of these two calculations:

• Purchase price for your new home + the cost of improvements/renovations to be made.
• The as completed appraised value. This is what the appraiser believes your home will be worth once the renovations are completed. This appraisal is done based on your contractors plans and specifications of the work to be completed and would be completed prior to starting your project.

While we do prefer that you have a general contractor manage and complete your project, there may be some cases where a home owner is able to complete the renovation work on their own. We do review those request on a case by case basis.

Careful consideration should be given to the scope and cost of your project. Home renovation projects can be costly and you will want to make sure that the return on investment makes sense to your specific situation and circumstances.

We will work closely with you to review your options so you can make the most informed decision possible.