This is a conventional loan product that is available to owner occupants and investors.
We have been consulting and providing final draw inspection services for HomeStyle Renovation loans since the late 1990’s. This is an interesting loan product as it is available for owner occupants and investors. Unlike the FHA 203k this loan can be used by investors. We can still assist you with your bid specifications and create your “scope of work” if you like or you can get a bid from a contractor and do it yourself. The key is again that you must address all health and safety issues.
The fantastic part of this loan product is that you get upfront money to get the project started and it can be used by investors. I know that many of you can pay cash for the property and then like to use a loan to get the work done. That is easy with a Title I loan or hard money loan to make the repairs but how many of these can you do if you had all the renovation money and the purchase money with only 20% down… at least five at a time maybe. You really should look into this loan program. You can build a home from the ground up, you can even use it to add a new swimming pool if you like.
Owner occupants & INVESTORS looking for a little money to replace the carpeting and paint OR MAJOR RENOVATION, this is an alternative to the FHA 203k loan program. Provide money up front to the vendors and one draw at the end to pay them off. Up to 50% of the “as completed value” can be for renovation. Example: Home purchase price is $200,000 but after the improvements are made it may be worth $300,000. The renovation loan portion can be up to 50% of the $300,000 or up to $150,000. If this floats your boat then you are in business. I love it when we get people into homes with low down payments and they walk away with an additional $50,000 in equity they hadn’t planned on. Where do you get these loans locally ? Prospect Mortgage in Concord amoung others.
NO PMI
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