What is a Renovation Loan?

Beginning in March 2020, there has been a rise in complete home renovation or flip house projects. From simple improvements to complete remodeling, the home front has been getting a massive facelift and that is why Renovation Loans have been created. While designed to provide the needed funds to update or renovate your home, it’s a good rule of thumb to view Renovation Loans as a means to reduce your long-term costs or increase the value of your property. The Score Team is your home renovation loan experts you can count on for any renovation project. Call us to learn more today at (314) 607-5566!

Who is eligible?

Renovation Loans can have a variety of different types including simple personal loans or government-sponsored loans, like as Freddie Mac’s
CHOICERenovation® loan, Fannie Mae’s Home Style renovation loan, and FHA 203(k) refinance loans from the Federal Housing Administration. The options available depend on your credit score and the levels of improvements you are planning. For instance, FHA 203(k) loans limit the renovations that can be done, but will offer more lenient credit requirements. Call the Score team at (314) 607-5566 to see if your fixer upper project will qualify for a renovation loan.

Features and Benefits

  • One payment

    While available in a number of loan types, a Renovation Loan can help eliminate paying two separate debts – improvement costs can become part of your new mortgage amount.

  • Rates are lower now

    With rates being significantly lower, a Renovation Loan may allow you to borrow for home improvements without dramatically affecting your monthly mortgage payment.

  • Add value

    While a Mortgage Loan can fund updates to offer more comfort, usability or even a decrease in your utility bills, they can also add value in your home… that’s a win, all the way around!

Call the SCORE Team today!