To wrap up this series on remodeling, lending expert Karen M Fisher shares her knowledge on financing your next remodeling project:
Imagine that you’ve found a home in the exact neighborhood that you’ve always wanted to live in, but that house needs a lot of work. You don’t have the cash in the bank to get the work done. What are your options in today’s world of mortgage finance?
There are several ways you can finance the repairs or renovation to a home in Arizona. Whether you already own the home and just want to make some changes, or if you want to purchase a home that needs work, here are a just a few of your options:
FHA Section 203(K) Rehabilitation Loan – Allows repairs or rehabilitation costs to be financed into the loan with a minimum cost of repairs of $5,000 and a maximum cost of $35,000. This loan can only be used on primary residences.
VA Rehabilitation Loan– Allows for borrowers to finance the purchase or refinance of a home and the cost of its rehabilitation. Open to veterans, active-duty military or eligible surviving spouses of members of the Armed Forces. The Veterans Administration does not set a cap on how much you can borrow to finance your home.
Conventional Renovation Loan – can be used to finance the purchase or to refinance a property and include the costs of the renovation with a loan amount up to $484,350
Jumbo Renovation Loan – allows you to purchase or refinance a home that you want to make changes to and is used for loan amounts above $484,350
When obtaining any type of construction, renovation or rehabilitation loan, the first step is to meet with a loan officer to walk you through the process. You will need to income and credit qualify for the loan. We will need to discuss the scope of the project and who will be doing the work. Projects that are well planned and well-designed can add tremendous value to your home and to your lifestyle. Please feel free to call me at 520-447-2279 to discuss your plans for your dream home!
Karen M. Fisher
Senior Loan Officer
NMLS ID# 180167 – AZ MLO Lic# 0911886
Summit Funding, Inc.
5151 E. Broadway Blvd., Ste. 700
Tucson, AZ 85711
Branch NMLS ID# 1464335 – Summit Funding, Inc NMLS ID#3199
AZ Lic# 0925837 – Equal Housing Opportunity
(520) 447-2279 Direct Phone