Some properties need a little extra TLC to transform them in a dream home. Renovation and rehab mortgage options, such as the FHA 203k rehab and the Homestyle Renovation loan program by Fannie Mae, combine home purchase or refinance with home improvement financing in one loan with one closing. This provides a convenient way for borrowers to make renovations, repairs, or improvements with a first mortgage, rather than a second mortgage, home equity line of credit, or another more costly financing method.
Eligible improvements that may be covered in renovation financing include:
- Repair/replacement of roofs, gutters, and downspouts
- Repair/replacement/upgrade of existing heating, ventilation, and air conditioning systems
- Repair/replacement of plumbing and electrical systems
- Repair/replacement of flooring
- Minor remodeling, such as kitchens and baths, that does not involve structural repairs or relocation or removal of walls
- Exterior and interior painting
- Weatherization, including storm windows and doors, insulation, weather stripping, etc.
- Purchase and installation of appliances, including free-standing ranges, refrigerators, washer/dryers, dish washers, and microwaves
- Improvements for handicap accessibility
- Remediation of lead-based paint hazards
- Repair/replacement/or addition of exterior decks, patios, or porches
- Basement finishing and remodeling
- Basement waterproofing
- Replacement of windows, doors, and exterior siding
- Septic system and/or well replacement
Have you found a house where you want to put in a little sweat equity to make it feel like home? Your loan officer can help clarify which improvements can be included in your financing.