The Home-style renovation loan
permits borrowers to include financing
for home improvements in a purchase or re-finance transaction of an existing home all within one mortgage. The home-style mortgage provides a convenient way for borrowers to make renovations, repairs, or improvements, rather than a second mortgage, home equity line of credit, or other, more costly financing method.The minimum down payment is 5% down for conforming loan amounts (417,000) and minimum 10% down on high balance loan amounts (625,000). Renovation costs are limited to 50% of the “as completed” appraised value of the home. Renovation costs may include:
Eligible improvements are unlimited generally speaking-any type of attached home repair or improvement is acceptable. Adding a detached garage, finishing a basement, adding a 2nd floor are all examples of allowed improvements under the Home-Style loan program.
A licensed state general contractor is required on all renovation loan programs.