If you want to buy a fixer-upper and transform it into something great, a renovation loan might be your answer. Renovation loans allow buyers to finance their next home purchase and the needed repairs at the same time. MortgageDepot’s loan professionals are experts in all renovation loans in Pennsylvania, and they will connect you with one that matches your real estate goals.
What Is the Difference Between a Renovation Loan and a Traditional Mortgage?
Renovation loans specifically target people who want to purchase a home that needs significant repairs. These specialized programs allow buyers to finance the projected value of the home after repairs are completed.
Traditional mortgage programs only allow buyers to finance the home’s current value. Buyers cannot include additional money for renovations. If you purchase a fixer-upper with a traditional mortgage, you might end up scrambling for funds to complete repairs.
What Types of Renovation Loans Are Available?
Several renovation loan options are out there, and at MortgageDepot, we understand them all. We help our clients investigate the following programs to find their best match:
- Fannie Mae HomeStyle®
- FHA 203(k)
- USDA Home Repair loans
- EZ “C”onventional
- Jumbo Renovation loans
Our dedicated loan officers understand that no two buyers are alike. We have access to multiple renovation loan programs to suit even the most complicated financing situations.
What Are the Typical Characteristics of a Renovation Loan?
As you consider renovation loan options, you can expect to see these similarities:
- Buyers might be able to finance primary residences, multi-family homes, second homes, condominiums or investment properties.
- Any improvements made with a renovation loan must be permanent.
- Financed renovations must increase the property’s value.
- Similar to traditional mortgages, renovation loan eligibility factors in the buyer’s credit score, debt-to-income ratio and other financial factors.
Contact MortgageDepot Today!
If you are interested in learning more about renovation mortgages in Pennsylvania, connect with MortgageDepot today. Our loan officers are eager to put you on the path to real estate success!
Contact us today or email us here for more information