Unlocking the Potential of Your Fixer-Upper with Suitable Loan Options

Are you considering the purchase of a home in need of refurbishment? At CrossCountry Mortgage, we're here to facilitate your journey! We provide three distinctive loan products* tailored for properties requiring various levels of renovation: FHA Streamline or Limited 203K, FHA Full or Standard 203K, and Fannie Mae HomeStyle Renovation. We'll delve into the specific attributes of each option for better understanding.

FHA Streamline 203K Loan Alternative

The FHA Streamline or Limited 203K loan, backed by the government, provides a renovation budget of up to $35,000. This loan can be used for an array of minor refurbishments and repairs, which may include:

1. Lead Paint or Mold Remediation: These are significant issues that often arise in older, unoccupied homes and are eligible for remediation under a 203K streamline loan.
2. Minor Remodeling: The loan covers various interior construction tasks. Whether you wish to revamp your kitchen or bathroom, we've got you covered. However, structural repairs are not included under this loan.
3. External Features: The construction, repair, or replacement of decks, patios, porches, fences, walkways, and driveways are all eligible.
4. Flooring & Appliances: Including carpeting and appliances like free-standing ranges, washers, dryers, and refrigerators.
5. Siding, Window, or Door Replacement: A 203K Streamline loan can help update old or damaged siding, windows, and doors.
6. Plumbing, Electrical, or HVAC: Repair, replacement, or upgrades of these systems are covered.
7. Roof, Gutters, or Downspouts: The loan can be used to repair or replace these components if your home inspector indicates a need.
8. Accessibility Improvements: The loan is perfect for enhancing accessibility features for occupants with specific needs.

FHA Full 203K** Loan Choice

The FHA Full or Standard 203K loan, an advanced version of the Streamline 203K loan, caters to more intricate renovations and rehab work exceeding the $35,000 cap of the Streamline loan. This loan mandates the involvement of a HUD consultant, who will assist with paperwork and liaise with you and your contractors to finalize a write-up before the appraisal inspection. The Full 203K loan allows for:

1. Structural Additions or Alterations: You can make substantial changes, such as adding a bedroom or modifying a load-bearing wall.
2. Minor Foundation Repairs: Issues like replacing the sill plate, which requires lifting the home off its foundation, are covered.
3. Major Landscape Work and Site Improvement: The loan is ideal for addressing property erosion and grading and drainage issues.
4. Termite or Pest Damage: Repair of structural damage due to pests is also covered.

Fannie Mae HomeStyle Renovation Loan Option

The Fannie Mae HomeStyle Renovation loan is an excellent solution for refurbishing investment properties, second homes, and non-FHA eligible properties. This conventional loan product lets borrowers finance their rehab costs into the loan. Some allowable repairs include:

1. Construction of unattached structures like a garage, pool house, or a free-standing accessory dwelling unit.
2. Luxury Additions: Outdoor amenities like built-in kitchens, BBQs, fireplaces, and swimming pools are allowed.
3. Final Work on a Newly Built Home: As long as the home is at least 90% completed, you can use this loan to finish the remaining non-structural work.

Further Resources

We're committed to supporting our clients. For more information about renovations and available financing options, check out our additional blogs. For personalized advice, connect with a Mortgage Advisor!

*Availability and terms are subject to change. Contact a Mortgage Advisor for the most recent information about currently available loans.

**This product is offered via a lender partner/broker channel. Subject to the terms and conditions of that lender, not CrossCountry Mortgage. Not all applicants will qualify. This is not a commitment to lend, terms and conditions can change without notice.

This article is for educational purposes only and does not constitute financial or mortgage advice. Loan programs, rates, and guidelines may change at any time. All loans are subject to credit approval and underwriting. For guidance tailored to your situation, consult a licensed mortgage professional.