A construction renovation loan may be just what you need…


Constructionext reno loans, or any of the construction renovation products we offer, allow you to buy and renovate at the same time, saving you lots of money. Looking at a property that needs some work? Our suite of products gives you the ability to roll the work into the mortgage. You do not need to have cash to make the updates on top of your down payment.

The number one reason to use a renovation product when you purchase is the use of conventional or FHA rules for down payment. Conforming conventional loans require as little as 5% down, and FHA requires 3.5%. The product that will be recommended to you will be based upon the current purchase price of the home, the repairs you wish to undertake, and the end value that will reflect the completed project.

• FHA loans have a maximum mortgage limit in our metro area of $332,350.
1. FHA 203K Limited Renovation products allow for non-structural repairs up to                        $35,000.
2. The FHA 203K Full Renovation product would be used if you have structural
repairs, or if the scope of work will be over $35,000.
• The Conventional Renovation product also offers different programs related to the
structural or non-structural aspects of the work to be done, and comes with a higher
maximum loan amount of $424,100.
• A Conventional Construction loan may be what you need. If your project is the
purchase of a property with an existing structure that needs to be torn down and a new
home built, we have a full construction to permanent product just for you.

When you are out looking at properties that meet your size, location, and school district requirements, try to see beyond what the house looks like in its current state. Envision what it could be if you made the changes that will make it the right home for you. Have your contractor put together a plan and a bid to do the work. Then, you can buy with confidence – renovate and save. – Randy Cullen, NMLS #326128

Comments are closed.