Renovation Mortgage Purchase Options

Transforming a fixer-upper into your dream home is within reach with the variety of renovation mortgage purchase options available through both conventional and government programs. At OneTrust, we offer a comprehensive range of solutions to help you finance your home improvement projects, whether you’re planning minor upgrades or major overhauls. Here’s an in-depth look at the renovation financing options available:

Conventional Renovation Mortgage Programs

Fannie Mae HomeStyle Renovation Loan

The Fannie Mae HomeStyle Renovation Loan is a versatile option that allows you to finance both the purchase of a home and the cost of its renovations with a single mortgage. Here are some key features:

• Flexible Use of Funds: Funds can be used for a wide range of renovation projects, from minor repairs to major structural improvements, including luxury upgrades.

• Single-Close Transaction: Combines the cost of the home and the renovations into one mortgage, simplifying the financing process.

• Primary Residences, Second Homes, and Investment Properties: Eligible for various property types, offering flexibility depending on your needs.

Freddie Mac CHOICERenovation Loan

Freddie Mac’s CHOICERenovation Loan is another excellent conventional option designed to help buyers purchase and renovate homes:

• Broad Scope of Eligible Renovations: Allows for a wide range of repairs and upgrades, including those necessary for disaster resilience and home accessibility improvements.

• Flexibility in Renovation Financing: Can be used for both purchase and refinance transactions, and eligible for primary residences, second homes, and investment properties.

• Single-Close or Two-Phase Closings: Offers flexibility in the closing process to best fit your renovation timeline.

Government Renovation Mortgage Programs

FHA 203(k) Loan

The FHA 203(k) Loan is a popular government-backed renovation loan that comes in two types: Standard and Limited.

• Standard 203(k): Ideal for major rehabilitation projects, including structural changes, room additions, and extensive landscaping. Requires the use of a HUD-approved consultant.

• Limited 203(k): Suitable for smaller projects with a maximum renovation cost of $35,000, such as minor repairs and non-structural improvements.

• Low Down Payment: Typically requires a down payment of just 3.5%, making it accessible to a broader range of buyers.

VA Renovation Loan

For eligible veterans and active-duty service members, the VA Renovation Loan offers an excellent way to purchase and renovate a home with favorable terms:

• No Down Payment: Often requires no down payment, making homeownership more attainable.

• Renovations Covered: Can be used for a variety of repairs and upgrades, provided the total loan amount does not exceed the property’s estimated value after renovations.

• Government Guarantee: Backed by the Department of Veterans Affairs, providing security and potentially lower interest rates.

USDA Rural Development Home Repair Loan and Grant Program

The USDA offers a unique option for those looking to purchase and renovate homes in eligible rural areas:

• Affordable Financing: Provides loans with low interest rates and grants to help homeowners make necessary repairs and improvements.

• Eligibility: Available to low-income rural homeowners who are unable to obtain affordable credit elsewhere, with a focus on health and safety improvements.

Why Choose OneTrust for Your Renovation Financing?

At OneTrust, we are committed to helping you find the best renovation financing option to fit your unique needs. Our experienced team will guide you through the process, ensuring you understand all your options and can make informed decisions. From the initial consultation to the final closing, we are here to support you every step of the way.

Ready to turn your fixer-upper into a fabulous home? Contact us today to learn more about our renovation mortgage purchase options and get started on your journey to creating your dream home.