Renovation loans
If you found the perfect home but it needs structural repairs or major updating, a renovation loan may be just the answer. Finance the purchase of the home and the cost of renovation in a single loan. These loans eliminate the need for second mortgages when repairs are needed. The loan amounts are based on “as completed” value as opposed to the present value.
Fannie Mae HomeStyle | Key Features
For loan amounts up to $647,200
Down payments as low as 3%
Maximum renovation costs is 75% of the after improved value
$5000 Minimum repair amount
Structural repairs and luxury items allowed
Can be used for purchase or refinance
Can be used for primary residence, second home or investment properties
Fixed rate only
Sweat equity and DIY not allowed
FHA Standard 203K | Key Features
Max loan amount varies by county ($569,250 in Deschutes County)
Down payments as low as 3.5%
No maximum repair limit
Structural repairs allowed but luxury items are not
$5000 minimum repair amount
Can be used for purchase or refinance
Owner occupied properties only
Fixed rate only
FHA loans require upfront and annual mortgage insurance premiums
Sweat equity and DIY not allowed
FHA Limited 203K | Key Features
Max loan amount varies by county ($569,250 in Deschutes County)
Down payments as low as 3.5%
Maximum renovation costs of $35,000
No minimum repair amount
Can be used for purchase or refinance
Owner occupied properties only
Fixed rate only
FHA loans require upfront and annual mortgage insurance premiums
Sweat equity and DIY not allowed
