The right loan, everytime!
At InterLinc Mortgage, we have an entire Renovation Department dedicated to helping you throughout the entire renovation process, allowing you to focus on having a home where you want and then turning it into the home you want. InterLinc Mortgage can finance the purchase, as well as the renovation costs, in one loan.
Understanding the Power of Renovation Financing
Options include:
- Purchases
- Refinances
- Second Homes
- Investment Properties
Highlights Include:
- Choose your own contractor to complete the work (no self-help)
- Options for no house payments during renovation period
- Conventional and FHA Renovation Programs
Examples of what can be done with a renovation loan (depending on program guidelines):
Structural
- Add on to the house
- Repair structural damage
- Build a new garage
- Finish a basement
Livability
- New furnace or air conditioning
- New septic system
- New plumbing
- New electrical
- Replace or repair roof
- Repair or replace well
- New driveway or walkways
- Fencing
Luxury
- Kitchen renovations
- Bathroom renovations
- New flooring
- New appliances
- Swimming pool installation
Health & Safety
- Accessibility improvements
- Eliminating health and safety hazards
What is a 203(k)?
The FHA 203(k) loan is designed for homes needing repairs or improvements. It allows you to combine the purchase price and the cost of improvements into a single mortgage.
- Finance home purchase and renovation together
- Customize and improve the home to meet your needs
- Credit requirements may be more flexible than conventional loans
- Can be obtained with as little as 3.5% down
Limited FHA 203(k)
- No minimum repair amount
- Non-structural repairs up to $75,000
- 1 to 4 units allowed
- Owner-occupied only
- 3.5% down payment
- Minimum 640 FICO
- No HUD consultant required
Standard FHA 203(k)
- Minimum $5,000 in repairs
- Allows structural and non-structural repairs within FHA limits
- 1 to 4 units allowed
- Owner-occupied only
- 3.5% down payment
- Minimum 640 FICO
- HUD consultant required
HomeStyle® Renovation
- No minimum repair cost
- Improvements allowed up to 75% of after-improved value
- 1 to 4 units (primary, second home, investment)
- Minimum 3% down payment
- Minimum 620 FICO
*A minimum 10% contingency reserve is required to cover unforeseen issues during renovation. Any unused funds are credited back to reduce the loan principal.
Refinancing Your Renovations
You can refinance your current mortgage into a renovation loan to improve your home and roll remodeling expenses into one loan. Available renovation refinance loan types include:
- Fannie Mae HomeStyle®
- Limited FHA 203(k)
- Standard FHA 203(k)
The Home Renovation Process
- Define Your Goals – Identify what improvements you want and why.
- Budget Your Renovation – Get contractor estimates and include contingency funds.
- Apply for a Home Improvement Loan – The application process is similar to a mortgage.
- Close the Loan and Complete Repairs
Renovation FAQ's
How much can I borrow?
Your loan amount depends on the appraised value after improvements.
What repairs are allowed?
Most interior, exterior, structural, and functional repairs depending on program guidelines.
Can I do the work myself?
No, work must be done by a licensed and insured contractor.
Can a family member do the work?
Yes, if they are licensed and insured.
Really good service
John Eduardo M.we truly appreciate the help in getting us through this process. You made everything clear. Thank you!
Sheena Marie Saplan V.Nothing as a first time home buyer Chris made this process extremely easy and great to work with
Brett M.Katie was on top of her game and very pleasant to work with.
Patricia N.There was a couple of times we waited a couple of days on responses from Tanya. My main frustration came from Underwriting asking for information that was already sent. At one point it just seemed like he or she. didn't want us to get approved. This my 4th home I've...
Antonio L S.