At Federal Hill Mortgage, our Renovation Loan options are tailored to help you create the home you envision, all within one mortgage. Whether you’re purchasing a new home or refinancing, our Renovation Loans can fund necessary improvements and remodels to make your space truly yours. Choose from three distinct renovation financing solutions:
Ideal for first-time homebuyers & homeowners looking for affordable renovation financing.
For those who want flexibility with renovations while maintaining a conventional loan structure.
For unique projects that require extensive or specialized upgrades.
Each loan option allows you to combine the cost of renovation with your mortgage, avoiding the hassle of multiple loans and making the process seamless and straightforward.
Ready to start your renovation journey? Contact us today to see how a Renovation Loan from Federal Hill Mortgage can make your dream home a reality.
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A Renovation Loan combines the cost of home improvements with a home purchase or refinance. This means you only need one loan to cover both the property and the renovation expenses, saving you from taking out separate loans. It’s an efficient way to finance your project and potentially increase your home’s value.
Eligibility varies depending on the type of renovation loan. Generally, these loans are available for primary residences, second homes, and some investment properties. Specific loan programs, like FHA 203k, are designed for owner-occupied properties, while other options like the HomeStyle Renovation Mortgage are more flexible.
Renovation Loans can cover a wide range of projects, from minor repairs to significant structural work. This includes kitchens, bathrooms, roofing, landscaping, and even adding rooms. The type of renovation permitted will depend on the specific loan program and lender guidelines.
To choose the right renovation loan, consider your goals and project scope. The FHA 203k Loan is ideal for first-time homebuyers or those needing affordable financing for essential repairs. The HomeStyle Renovation Mortgage suits homeowners looking for flexible renovations within a conventional loan structure. The Specialty Renovation Mortgage is best for unique or extensive projects that require specialized upgrades. Each loan option offers different features, so consulting a mortgage expert can help you select the one that aligns with your needs.
Yes, you can use a Renovation Loan to refinance an existing mortgage. This option allows you to improve your home’s value while consolidating your renovation and refinance costs into one monthly payment.
A Renovation Loan is structured as part of your mortgage, covering the purchase and renovation costs. In contrast, a HELOC is a separate loan that provides funds based on your home’s equity. Renovation Loans are ideal for comprehensive remodels or when buying a fixer-upper, while HELOCs are often used for smaller, ongoing projects.
With a Renovation Loan, funds for the renovation are typically held in an escrow account and released in phases as each project milestone is completed. This way, you have control over the project’s progress while ensuring contractors are paid on time.
Bundling renovation costs allows for a single loan payment, potentially lower interest rates than separate financing, and greater flexibility in managing your finances. It also eliminates the need for a secondary loan, making the process smoother and often more affordable.
Each loan type has guidelines for renovation expenses. FHA 203k Loans have limits based on FHA county loan limits, while HomeStyle and Specialty Renovation Mortgages allow for higher amounts, particularly if the project significantly increases the home’s value. Our team can help determine the best option based on your budget and goals.
