MYTH 1: “My Options Are Limited”
When it comes to renovation financing, there are more cans than cannots. White a Limited 203K is intended to remedy cosmetic deficiencies and maintain a total renovation budget of less than 35,000, the Standard 203K can support a project as robust as a teardoen and rebuild. Similarly, the HomeStyle renovation loan requires repairs that add value, are permanently affixed and do not exceed 50% of the after-improved value. Want a pool? You got it! An addition? We can do that too! Replace all mechanicals and upgrade flooring? There’s a renovation loan for that.
Remember, renovation loans cannot improve shared space of attached properties, increase unit count or complete new construction homes.
MYTH 2: “Closing Costs Are Higher”
In addition to the sales price, renovation loans use the after-improved value to finance what are called hard and soft home improvement costs into the loan amount. Your hard costs include bid, contingency reserve and ant escrowed mortgage payments the borrower elects to finance. Closing costs are not necessarily higher on a renovation loan. Renovation Soft costs are not closing costs.
MYTH 3: “I have to Be a Renovation Expert”
Since Fairway Independent Mortgage Corporation’s certified Loan Officers provide exemplary renovation expertise, you can relax knowing we’ll walk you through the entire process, making it as smooth as possible.