Did you know that you can get a Fannie Mae HomeStyle Renovation Mortgage or a 203(k) loan to refinance your home?! That's right!
Say for example, that you've outgrown your home, but you want to stay in the neighborhood. Ever thought about building an addition to the home? You can do it with a HomeStyle or 203(k) loan.
That kitchen update that you've always wanted? You know, with the Caesar stone counters, new appliances, and new cabinets? You can do it.
Updating your bathrooms, adding a swimming pool, adding a garage, fixing up an ADU, all options.
Here's how it works: You would get a bid from a contractor for the work to be completed, and then an appraiser would come out to your home and provide you an appraisal (using that bid) with an "After Repair Value." You can borrow up to 50% of the After Repair Value.
Now--keep in mind that you would refinance your entire loan. That means that you would refinance into today's interest rate. For some of you, that means your rate would go up. You couldn't just refinance the portion of the remodel and have a 2nd loan. So you'll want to check your current interest rate and the interest rate available (Call us--don't rely on quotes you find searching the web), then do the math, and consider things like 1) how much will my home be worth afterwards? 2) how else would I get the money to upgrade, and at what cost?
Whether you decide to take advantage of a renovation loan or not, its a pretty cool feature of both the 203(k) loan and the HomeStyle loan!