Renovation Loans: Find the perfect location & create the perfect home.

Mortgage and Lending with HomeBridge Financial Services (NJ) NMLS 248937



In most of New Jersey and in many parts of the country there is an inventory shortage in the housing market.  This has caused problems for buyers and created a sellers’ market. Buyers want great houses in great locations. Even great houses in not-so-great locations are getting plenty of attention as the inventory drought continues with no apparent end in sight.

This goes against the three rules of Real Estate: Location Location Location.  Buyers want new and shiny, and are overlooking homes that may be in the perfect neighborhood because they are dated, tired or missing something on their wish list.

Fortunately there is a solution:  Renovation Loans to the rescue.  Buyers can use a Fannie Mae HomeStyle or the FHA 203k loan to make any house into the perfect home.

How does it work?  It is pretty simple, start by looking at homes that are being ignored by other buyers (instead of the perfect home) and focus on the location and neighborhood that best fit you.  Typically you will get a home that needs work at a discount and using the 203k or the Homestyle loan you can do anything you can dream up, from simple upgrades to major remodels and additions, in most cases building equity faster than your friend that purchased the new and shiny home.

As with any home purchase you start by speaking with a Licensed Mortgage Loan Originator (that understands renovation loans) to be qualified and make an offer on the home. There aren’t any special requirements or down payments. For an FHA loan the minimum down payment is 3.5% and for the Fannie Mae it is 5% down, or more if you prefer, the only difference is the down payment will be calculated on the total purchase price + renovation costs. 

Another difference will be the appraisal. The appraiser will appraise based on the “After Improved Value” so there is less of a worry about repair issues or value issues when using a renovation loan. 

This is all packaged into one loan, allowing you to buy a home that may not be eligible for traditional financing and allowing you to use your imagination to create your perfect shiny new home.  So when you go out to shop for a home, Focus on your needs: Location, School system, Commute, View – Find the home that fits your definition of the perfect location and make it your own using a renovation loan.

Robert Rauf is a licensed Mortgage Loan Originator (NMLS#248937) at HomeBridge Financial Services, the largest FHA 203k lender in the country,  Located in Toms River, NJ.


Robert Rauf 
Mortgage Loan Originator NMLS# 248937 
or my blog: 
Office: (732)908-4868  Cell (732)740-0175

Since 1987 I have been helping my clients fulfill their dream of home ownership! HomeBridge Financial Services, Formerly REMN, HomeBridge Financial Services is located at 16 Madison Avenue, Building 2 Suite 2D Toms River, NJ 08753. NMLS #6521. New Jersey Licensed Lender and Mortgage Banker #L041053. Visit for more information. NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgage in Ocean County NJ, Mortgage in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731, Lacey 08731 08734, Beachwood Bayville , Manchester 08757 08733, Manahawkin 08050, Robert Rauf is a Licensed Mortgage Loan Originator in New Jersey.


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Re-Blogged By Re-Blogged At
Lending / Financial
New Jersey Ocean County
Real Estate Rookie
The FHA Mortgage Group
Real Estate Professionals
fha 203k
renovation loan
fannie mae homestyle
robert rauf

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Bruce Kunz
C21 Solid Gold Realty, Brick, NJ, 732-920-2100 - Howell, NJ
REALTOR®, Brick & Howell NJ Homes for Sale

Hi Robert Rauf. Well said!! I have a client now that is hoping to 'win' a bank owned property in Brick, NJ that needs work (is that redundant?)

Anyway, I've suggested they look at the 203k loan and your article is very helpful explaining why!

Thanks for sharing,

Jul 04, 2017 03:15 PM #1
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

Bruce Kunz  Reno loans are great options for your buyers.  and the K and the Homestyle are 2 great ways to help your buyers create their perfect home!

Jul 05, 2017 06:42 AM #2
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Many buyers can pick up instant equity by using renovation loans when buying fixer uppers

Aug 25, 2017 06:43 AM #3
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