A renovation loan can help fund home improvements, allowing you to turn a house into your dream home.
Renovating for a new home purchase
If you’re a buyer who’s found a home with great potential, but needs some repairs, Heritage Financial can provide a loan for the purchase and renovation costs. We offer a number of loan types that cover minor to major rehabilitation, all included with one mortgage payment.
The Federal Housing Administration (FHA) offers loans specifically for renovation. FHA 203(k) funds a primary residence including repairs in one mortgage with a minimum down payment of 3.5%. There are two types of 203(k) loans:
Standard FHA 203(k)
Allows borrowers the flexibility to finance major rehabilitation that costs a minimum of $5,000 up the county limit. The minimum amount of $5000 does not apply to the standard 203K as this product is only for repair/renovation cost that exceed $35,000.
FHA 203(k) Plus
Streamline FHA 203(k)
Provides financing for minor renovations and repairs up to $35,000 of your mortgage. This is more commonly known as a limited 203k were the cost of repair/renovation costs do not exceed $35,000. There is no minimum repair/renovation cost any longer on this product.
Improving your current home
If you’re a current homeowner who is interested in making updates that would enhance the look and layout of your house, a renovation might be the solution. Based on the type and scope of your remodel, we can offer a variety of loans that will help with the cost.