Renovation Refinances – After Repair Value Provides More Room to Renovate
203k & HomeStyle Renovation Mortgages – Turn YOUR House BACK Into YOUR Dream Home
Life, inevitably, comes with change. Babies are born, those babies grow up, they head off to college. Income fluctuates up and down with good and bad economic times, promotions, demotions, commissions or bonuses.
Your health changes too, sometimes for better, sometimes for worse. Your parents are getting older too. They have health issues, their retirement took a hit in one of the many economic boom and bust cycles. 
Change happens. Life happens. Memories are created. One thing, just one thing, has stayed constant throughout the ebbs and flows of the currents of life. Your HOME.
Your home – where so many memories live – WAS the perfect house when you purchased it nearly a decade ago. But a lot has happen in a decade and the once perfect house is now lacking. Too big, too small, too old or too dated. Your taste, the styles you prefer, have refined with age. Regardless, your home doesn’t fit you anymore. It fits former you, that young family from nearly a decade ago.
You love your neighborhood. You are friends with the neighbors, your kids and their kids play every day after school. Your commute is short, the school district is great, the neighborhood is safe. It’s family friendly. You don’t want to move.
You dread the hassle, the expense, the stress and all the work involved with picking up root and putting them down elsewhere. But you don’t have a choice, the house just doesn’t work anymore. If only you had another option. A way to stay, to keep your roots firmly planted in the fertile ground of 10 years of created memories.
You want to stay, you tried to stay, but the equity hit from the Great Recession zapped your ability to do a cash-out refinance and hammer out some of the much needed repairs, updates or add the square footage you need to fit you growing family.
You are in luck. You don’t need equity and you don’t have to move.
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Renovation Refinance (203k | HomeStyle) Mortgage
No equity? Not a problem. Renovation refinances, unlike traditional cash-out refinances, are NOT based on the current value of your home. The renovation refi is based on the “as-completed” or “after repair value”.
That means the value you add with your upgrades is considered when determining the loan-to-value AND how much room you have to renovate.
Maybe some numbers will help illustrate your benefit more clearly?
You owe ~$200,000 on your current mortgage. You need $70,000 to add a master suite and bath so your kids no longer have to share a room. Your home is only worth about $235,000 right now. Cash-out refinance are generally capped at 85-90% loan-to-value. In other words, it’s not an option for you. You simply don’t qualify.
However, once that fancy master suite and additional square footage is added; the value of your home will be ~$320,000. Since renovation refinances are considered RATE/TERM refinances and not CASH-OUT REFIS they allow for higher loan-to-values in addition to the ability to use the “as-completed” value.
You can go as high as 97.75% on the loan-to-value on the FHA 203k and 95% on the HomeStyle.
Your in business. You might even be able to add that soaking tub or that fancy shower with room to fit eight people (not that you are into that kind of thing).
Starting to sound pretty good right? What if I told you that if your current rate is above 5% then we’ll likely be able to lower that for you? We offer both the FHA 203k and the HomeStyle renovation mortgages so those with less than stellar credit, those with impeccable credit and those sitting all points in-between can have the best chance to find the perfect renovation loan for them.
I know what you are thinking and it is not to GOOD to be TRUE. It very true and very good.
You next step is simple; click here and check your renovation refinance eligibility. We’ll reach out to you to discuss full details, opportunities and provide some firm monthly payment and cost numbers to review. We’ll also get the details of your renovation scope of work and help you find one of the plethora of federal, state and local tax credits that you may qualify for with the right scope of work.
So, what are you waiting for?
There’s only one catch… You have to provide before and after photos so we can see how awesome your renovation turned out! So let’s talk, let’s re-ignite the excitement and pride you had when your first purchased your home.
Let’s build the back-drop for another ten years of beautiful memories.
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HomeStyle Renovation Underwriting Guidelines | FHA 203k Underwriting Guidelines
203k \ HomeStyle BEFORE & AFTER Photos