What You Need to Know About the HomeStyle Renovation Loan
As you watch home renovation shows like Fixer Upper or Property Brothers, you might imagine yourself purchasing a home that needs a little TLC and putting your personal touch on the property. But home renovation and rehab projects can be costly, so you might hold off on a project if you doubt your ability to come up with the cash.
The good news is that you don’t have to put your rehab plans on the back burner. Cherry Creek Mortgage takes pride in providing our borrowers with an array of financing opportunities, including the HomeStyle Renovation loan that allows you to include the cost of home improvements in your mortgage loan. This might be exactly what you’re looking for, but there are a few things you need to know about this program.
What type of properties are eligible?
You can purchase many types of properties under this program. These include primary residences, second homes, as well as investment properties. Additionally, this program isn’t only for single-family homes or condo units. It can also be used to buy a co-op and multi-family homes up to four units.
What is the required down payment with a HomeStyle Renovation loan?
Down payment amounts for the HomeStyle Renovation loan can be as low as 5%, or as high as 20%, depending on whether you’re purchasing a primary residence or an investment property.
If you’re buying a single-family property as your primary residence, you only need a 5% down payment. On the other hand, if you’re using this program to purchase an investment property, your down payment will range between 10% and 20%. Give us a call and one of our loan experts can provide more information on down payment requirements based on your circumstances.
What are acceptable renovations under the program?
The amount you’re eligible to borrow is based on the estimated value of the property after renovations. Because this is an extremely flexible program, you can put the cash toward a variety of renovations, including an in-ground pool and landscaping. Other uses for funds include a kitchen and bathroom remodel, new floors, window replacement, new roof, room additions and much more. We’re more than happy to provide a list of approved projects so you know what to expect with this loan.
What is the minimum credit score requirement for a HomeStyle Renovation loan?
Typically, qualifying for this loan program requires a minimum credit score of 640 (owner-occupied residences).
Can I complete my own home renovation projects with this program?
Yes, but only if you’re a licensed contractor. If not, this program requires that you hire a licensed contractor with experience and insurance.
Is the HomeStyle program only for new purchases?
Another amazing feature of this renovation loan program is that it isn’t only for new purchases. You can also use this loan when refinancing a property.
Home renovation projects have become much easier with the help of specialized loan programs. So if you are ready to start a project and need cash, give us a call today. We can answer any questions you have about this loan (and our other loan products) and help you determine which mortgage is the right one for you.