Renovation and Remodeling with FHA 203K and HomeStyle Rehab Construction Loan Financing in Cary, Raleigh, Chapel Hill, Durham, and the Triangle NC
At Paradise Found Construction, we have the expertise and proven track record working with homeowners and Mortgage Companies to help you finance the improvements you need to make your home your personal Paradise.
Some properties are almost perfect – the location is good, and the property has potential, but improvements and/or repairs need to be made to transform the home to meet your vision and needs.
Renovation Construction loans provide the cash needed to transform the your home to meet your vision and needs.
Renovation loans enable home buyers and homeowners to finance both the purchase (or refinance) of the home plus the renovations you desire – all through a single mortgage instead of applying for multiple loans or opening a line of credit at a higher interest rate.
- Qualify for loans based on the appraised “as-completed” value of the home with your improvements.
- Improve your home at low first mortgage interest rates.
- Do almost any type of improvements or repairs.
- Finance non-occupancy costs during construction rather than live in a construction zone.
- Lender involvement in construction oversight and monitoring provides added value to borrowers.
FHA 203K RENOVATION LOANS
An FHA 203k loan allows you to borrow money, using only one loan, for both home improvement and a home purchase. These loans can also be used just for home improvements, but there might be better options available. the mortgage loan is based on the “as-completed” appraised value of the home after the improvements have been completed. 203k loans are guaranteed by the FHA (Federal Housing Agency), which means lenders take less risk when offering this loan. As a result, it’s easier to get approved (especially with a lower interest rate).
HOMESTYLE MORTGAGE LOANS
HomeStyle Mortgage Loans offer borrowers of all income levels up to 90 percent financing for the purchase and improvement of a home. Financing is based on the “as-completed” appraised value of the home similar to the FHA 203K, and borrowers can use up to 50 percent of that value for improvements or repairs.Fannie Mae does not specify which improvements a borrower may or may not finance. This means that the improvement funds can be used for “cosmetic” purposes such as carpeting and various kinds of remodeling. There is no minimum amount that needs to be spent on repairs. The improvements must be performed by a NC Licensed General Contractor.
OTHER CONSTRUCTION LOANS
Some lenders offer their own branded version of renovations loans similar to the ones above.
At Paradise Found Construction, we’re grateful and honored to be trusted with the homes of our clients in Cary, Raleigh, Chapel Hill, Holly Springs, Apex, Durham, and beyond. We are dedicated to providing affordable remodels and new custom homes that fit your unique vision, while partnering with you to scale features to align with your budget. We promise to be transparent and reliable to help you along each step of the way.
Choosing custom construction allows you the flexibility to get everything you want — and nothing you don’t.