How to Finance Your Home Renovation

Posted March 6, 2019

If you own or have found a home that needs a little (or a lot) of TLC, PrimeLending has the financing you need to make your dream home a reality! Our renovation remodeling loans allow you to roll the costs of repairs or upgrades into refinancing your current mortgage, or into the mortgage for the home you buy. Great, right?

With a PrimeLending renovation and remodeling loan, the possibilities are endless. If you just need to make some ordinary repairs and cosmetic changes, a few of our loans are designed specifically for smaller projects. They are very versatile with no minimum loan requirements for the repairs or upgrades you want to make but are limited to non-structural repairs with maximum loan amounts around $30,000.

Your project can include things like:

Replacing or upgrading your plumbing, electrical, heating or cooling systems
Insulating your home for greater energy-efficiency
Repairing or replacing your roof and gutters
Refinishing or waterproofing a basement
Getting new windows, doors or floors
Redesigning your kitchen or bath
Landscaping or adding a deck
Buying new appliances

Is a Fixer-Upper In Your Future?

While there are many savings and other advantages to buying a fixer-upper, they can also turn out to be cost prohibitive. Here are some considerations you should consider before you make the investment in this type of home.

Check local zoning regulations: Cities and towns have zoning requirements and restrictions. Find out what you can and cannot do with the home you want to buy.
Have the home inspected: An essential step for all new home loans, this will give you an assessment of what shape the home is in and what needs to be done.
Estimate repair costs before making an offer: Show a contractor the inspection report and the house, then ask for a written estimate for the repairs. If you’re planning to do some of the work yourself, don’t forget the cost of supplies and materials.
Try to get a price break: A home that needs a lot of work could get you as much as a 20-40% discount on the purchase price. Take into account the time, money and hassle of doing the renovation when you make an offer.
Choose the right type of loan: PrimeLending offers different types of remodeling construction loans intended for different types of projects – from major structural repairs to cosmetic remodeling or upgrades. Talk to a home loan expert to make sure you are getting the right loan for your needs.
Determine if you can do any of the work yourself: Having the skills (and the time and patience) to do some of the work for yourself can save you a lot of money, plus give you a great sense of pride and accomplishment.

Renovation Loan Types

Not sure what type of renovation loan is best for the project you have in mind? Good news! With PrimeLending you have options.

Conventional
Type	Best for	Advantages
HomeStyle®	Older homes in established neighborhoods Appraiser-required or borrower requested repairs that add value to the home	Fewer costs by rolling repairs purchase/refinancing expenses into a single loan
EZ “C”onventional	Covers appraiser-required or borrower requested repairs Finance small upgrades on a newly purchased home over a short period of time Cosmetic, non-structural improvements	Creates dedicated account to cover costs of updates Fewer costs by rolling updates and purchase/refinancing expenses into a single loan
Buyer/Seller Funded Repair Escrow	Borrower-requested repairs or other home updates that will determine final appraisal	Creates dedicated account to cover costs of updates Funds can be provided by the buyer or seller Fewer costs by rolling construction and purchase/refinancing expenses into a single loan
Jumbo Renovation	Covers appraiser-required or borrower requested repairs on high-priced luxury homes that are valued over $484,350 Can be used for refinancing or home purchase	Covers a dedicated account to cover non-structural repairs up to $250,000 Fewer costs by rolling repair and purchase/refinancing expenses into a single loan
Pool Escrow	Adding a pool	Creates dedicated account to cover cost of pool construction Fewer costs by rolling construction and purchase/refinancing expenses into a single loan
Weather-Related Escrow	Repairing weather damage Making weather-realted or energy efficient upgrades	Creates dedicated account to cover cost of repairs or upgrades Fewer costs by rolling construction and purchase/refinancing expenses into a single loan

Government-insured
Type	Best for	Advantages
FHA 203k Full/Standard	Refinancing or buying older properties Refinancing or buying a home requiring structural repairs or major renovation	Low down payment requirement on new home purchase Low refinancing interest rates Fewer costs by rolling repair and purchase/refinancing expenses into a single loan
FHA 203k Streamline	Refinancing or buying a home that needs updating or repairs Cosmetic repairs, remodeling up to $35,000	Low down payment on new home purchase Low refinancing interest rates Less paperwork Fewer costs by rolling repair and purchase/refinancing expenses into a single loan
HUD REO with Repair Escrow	Purchasing a foreclosure home Foreclosed properties requiring minor repairs up to $5,000	Creates dedicated account to cover appraiser-required repairs Fewer costs by rolling repair and purchase/refinancing expenses into a single loan
USDA Repair Escrow	Refinancing or buying USDA property that needs updating or repairs.	100% financing for refinancing or home purchase in a USDA rural area Creates dedicated account to cover repairs Fewer costs by rolling repair and purchase/refinancing expenses into a single loan

If you’re ready to get started you can Apply Now. You can also contact a PrimeLending loan expert or give us a call at 800-317-7463.