Renovation Loans: Everything You Need to KnowFebruary 20, 2023 by X2 Mortgage
There may come a time when you need to finance repairs and upgrades to your home. You might also be in a situation where you are purchasing a new home that happens to be a fixer-upper.
In both cases, X2 Mortgage can connect you with multiple lending products to help you fund your renovation projects.
Types of Home Renovation Loans
- Fannie Mae HomeStyle Renovation Loan. This product lets you bundle together a mortgage with the financing you need to renovate and repair a home. It is available for home purchase or refinance.
- FHA 203(k): This is another popular product for bundling together the cost to buy a home and repair it. You can also use it for temporary living costs elsewhere as you make repairs for up to six months. It includes a contingency reserve as well for unexpected costs.
- Freddie Mac CHOICE Renovation Loan: This product is very similar to the HomeStyle Renovation Loan, but it is offered through Freddie Mac instead of Fannie Mae. One extra feature it offers is the option to finance for resilience upgrades or disaster-proofing.
Other options for financing renovations to a home include home equity loans and home equity lines of credit, also known as HELOCs. Cash-out refinancing is a possibility as well.
On your own, it may be a challenge to figure out what type of home renovation loan is suitable for your project. During your consultation, you can tell us about what you have planned, and we can help you figure out which type of loan will provide you with the most competitive advantages in terms of flexibility and affordability.
Benefits of X2 Home Renovation Loans
- Roll together financing. If you want to purchase a home and finance renovations simultaneously, there are home renovation loan products that let you do that.
- Minimize costs. By bundling together a mortgage with renovation financing, you can close just one time. This can help you to keep your costs down.
- Keep it simple. Bundling together renovation financing with a mortgage for home purchase streamlines the entire process, making it faster, easier, and stress-free.
- Find the product that is right for you. Not every mortgage company offers renovation loans, much less multiple types. At X2, we maximize your options in terms of lending products so you can find the fit that is ideal for your individual scenario.
- Work with a company with expertise in renovation loans. Because we are so experienced in these types of loans, we are able to process them quickly and smoothly, letting you focus on your projects.
Finance Your Home Renovation Projects Now
Have questions about home renovation loans, or need help picking the right product? Please call us today at (480) 992-4200 to schedule your consultation. Based in Chandler, Arizona we serve homebuyers and homeowners throughout many states.