Renovation or Rehab Loan

Refinance or Purchase and Renovate in just ONE Loan!

Our Renovation Loans enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage - or to finance the rehabilitation of their existing home.Our Renovation Loan covers the purchase or refinancing and rehabilitation of a home that is at least a year old. A portion of the loan proceeds is used to pay the seller, or, if a refinance, to pay off the existing mortgage and the remaining funds are placed in an escrow account and released as rehabilitation is completed. The cost of the rehabilitation must be at least $5,000, but the total value of the property must still fall within the mortgage limit for the area. The value of the property is determined by either (1) the value of the property before rehabilitation plus the cost of rehabilitation, or (2) 110 percent of the appraised value of the property after rehabilitation, whichever is less.

• Up to 125% of the Purchase Price up to $729,750!
• One Simple and Fast Loan!
• One set of Closing Costs!
• One monthly Mortgage Payment!

Eligible Renovation Activities

The extent of the rehabilitation covered may range from relatively minor (though exceeding $5000 in cost) to virtual reconstruction: a home that has been demolished or will be razed as part of rehabilitation is eligible, for example, provided that the existing foundation system remains in place. The renovation loan can finance the rehabilitation of the residential portion of a property that also has non - residential uses; they can also cover the conversion of a property of any size to a one - to four - unit structure. The types of improvements that borrowers may make include:

• Structural alterations and reconstruction.
• Modernization and improvements to the home's function.
• Elimination of health and safety hazards.
• Changes that improve appearance and eliminate obsolescence.
• Reconditioning or replacing plumbing; installing a well and/or septic system.
• Adding or replacing roofing, gutters, and downspouts.
• Adding or replacing floors and/or floor treatments.
• Major landscape work and site improvements.
• Enhancing accessibility for a disabled person.
• Making energy conservation improvements.