WHAT IS A RENOVATION HOME LOAN
The renovation home loans are commonly called “203(k)” loans or mortgages. Actually, the 203(k) is only one of three programs we offer to help renovate homes. The 203(k) was the first program offered by the FHA (Federal Housing Authority) in the 1970’s. Revisions were made in the 1990’s, which expanded the program. Fannie Mae and Freddie Mac then began to offer a conventional renovation loan which has become a very popular choice in today’s market. In addition to the 203(k) and conventional renovation loan programs, George Mason Mortgage also offers a construction loan which allows for renovation.
Homeowners and purchasers find that renovation loan programs are great options because unlike other forms for financing a home, the programs allow the loan to be based on the AFTER-IMPROVED value of the home. This allows you to finance a home and include the costs associated with repairs, remodeling and/or additions into your loan. In some cases, you may be able to finance up to 6 months of payments as well.
George Mason Mortgage is proud to offer the renovation loans for a wide range of home improvement projects. One of the greatest benefits is being able to purchase or refinance a home as well as paying for the repair and/or remodel costs…all with a single loan. As the housing market continues to change, bank owned (REO) homes are offered for sale, and homes continue to be sold AS-IS. The renovation loan program allows purchasers and homeowners a way to make improvements in a turn-key fashion.
THE PERFECT SOLUTION
A renovation loan program is a great choice, especially for first-time homebuyers, current owners or purchasers of homes in need of repair or renovation. The program can be used for primary residences, vacation homes and investment properties. Your renovation home loan expert can lay out options for your specific situation so you can choose the solution that meets your needs. If you have found the right neighborhood, but cannot find the right home in today’s market, then consider using a renovation loan to add-on or make changes to a home listed to suit your needs.