Renovation Loan
With a renovation loan, borrowers receive financing to purchase and improve a property. Direct Mortgage Loans offers many renovation solutions.
What is a Renovation Loan?
Renovation loans are designed to help borrowers finance home improvements or renovations.
Here are some situations when you might consider getting a renovation loan:
- You want to make improvements to a new home: If you’ve recently purchased a home that needs some work, a renovation loan can help you finance the improvements.
- You want to increase the value of your home: Renovations can increase the value of your home. If you’re planning to sell your home in the near future, a renovation loan can help you make the improvements you need to get a higher price.
- You want to make your home more comfortable: If you’re living in a home that needs some updates, a renovation loan can help you make the improvements you need to make your home more comfortable.
- You want to make your home more energy-efficient: Renovations can help make your home more energy-efficient, which can save you money on your utility bills. A renovation loan can help you finance these improvements.
- You want to consolidate debt: Renovation loans can be used to consolidate debt, such as high-interest credit card debt or student loans. If you have a lot of debt and need to refinance your home, a renovation loan may be a good option.
It’s important to note that renovation loans come with some risks, such as the risk that the renovations will not increase the value of your home as much as you expect or that the renovations will cost more than you anticipate. Be sure to weigh the pros and cons carefully and consult with a mortgage professional to determine whether a renovation loan is right for you.
Renovation Loan Options
FHA 203K Loan
An FHA 203K covers the purchase of the home and the cost of necessary repairs. This product is designed specifically for homes that require rehabilitation.
Freddie Mac’s CHOICERenovation
An economical financing option to repair, restore, rehabilitate or renovate an existing home with less restrictive repair guidelines.
