Renovation Loans
Renovation loans: buy and fix in one mortgage
Renovation loans roll the purchase price and the cost of repairs into a single mortgage, based on the home's value after the work is done.
Key facts
- Available in
- New York, New Jersey, Florida, Pennsylvania
- Programs
- Fannie Mae HomeStyle, Freddie Mac CHOICERenovation, FHA 203(k)
- Based on
- After-renovation appraised value
- Funds
- Held in escrow and released as work is completed
- Contractor
- Licensed contractor bids required
Who it's for
- Buyers of homes that need work
- Owners adding a unit or finishing a basement legally
- Investors rehabbing 2-4 family homes to live in
- Homeowners refinancing to renovate
Much of the housing in New York City, North Jersey and Philadelphia is old, and many of the best-value homes need real work. A renovation loan lets you finance it at mortgage rates instead of on credit cards or a separate construction loan.
We coordinate the contractor bids, the as-completed appraisal and the draw schedule so the work and the loan stay in sync.
Popular in Brooklyn
Manhattan Beach, Midwood, Dyker Heights, Sunset Park, Flatbush & Ditmas Park, Kensington & Windsor Terrace, East Flatbush, Crown Heights
Questions
How much can I borrow for repairs?
It depends on the program and the after-renovation value. We size it from your contractor's bid.
Can I do the work myself?
Generally no. Most programs require a licensed, insured contractor.
Can I renovate a co-op with these loans?
Rarely. These programs are built for houses and some condos.
Questions about Renovation Loans?
A licensed loan officer will walk you through the numbers, usually the same day.