What are Renovation Loans?
A Renovation loan it’s possible to purchase a property and include the cost of repairs and improvements in the loan — making it easier than ever before to purchase a fixer-upper or renovate your current home.
Renovation Loan Advantages:
- A lower cost: Since you are taking out one first mortgage for the home and renovation, your interest rate is usually going to be lower and you are usually going to have a longer period of time to repay the loan.
- A larger tax deduction: Since you are taking out only one first mortgage, the interest, including the cost for renovation, will be tax deductible.
- Flexible Credit Requirements.
Renovation Loan Options:
- FHA 203(K) – 3.5% down payment required
- Conventional – 3% down payment required
- USDA and VA – 0% down payment required
Check to see if you qualify for a Renovation Loan: