Has your home started to show its age? While home renovations are a great idea in theory, they can be undeniably expensive in practice. In most cases, these renovations will eventually pay for themselves through the increased value of your home. However, it can be hard to get your home improvement plans off the ground if you don’t have the funds necessary to begin. Luckily, that’s where the HomeStyle Renovation loan in Boston, MA, comes in.
What Are HomeStyle Renovation Loans?
The HomeStyle Renovation loan is similar to a construction loan in that it’s two loans bundled into one. These home renovation loans incorporate the cost of fixing or renovating the house into the cost of the existing home. The result is a single mortgage or payment that covers both.
This kind of home renovation loan is great for fixer-upper homes that aren’t quite move-in ready yet. Alternatively, they work for the odd investment property or vacation home that needs repairs to reach its full market value.
Homeowners can also take advantage of the HomeStyle loan in combination with their existing home equity to refinance their current mortgage. This gives you the funds you need to turn your current home into your dream home, all without separate loans, rates, and payments.
HomeStyle Home Improvement Loans:
Advantages and Limits
If you plan to renovate your new property or house, it makes a lot of sense to purchase the HomeStyle Renovation loan in Boston. The biggest advantage of this loan program is its “all-in-one” aspect: you’ll have just one home loan with a single loan amount, lower interest rates, a single down payment, and just one set of closing costs.
Additionally, the down payment for a HomeStyle loan and mortgage can be very low if you qualify. First-time homebuyers, in particular, may qualify for a payment as low as 3%.
These home improvement loans do have some limits that you’ll need to follow. The most important is the cost limit. HomeStyle renovation loans are limited to the following (whichever is lower):
- 5% of the completed value of the property
- 75% of the total sales price and renovation cost of the home
The above rule only applies to the renovation portion of the budget, meaning the cost of the mortgage itself may be calculated differently. Essentially, this means that if more than 75% of the home’s value is in its renovations, you may not be able to cover it all through the HomeStyle loan.
Getting Started With Your Home Renovation Loan
The HomeStyle loan is a trademark of the Fannie Mae mortgage company website, but we offer it through Style Mortgage as well. This type of loan is an incredibly versatile tool that has the power to put you in control of your future (and your home).
If you’re interested in how the HomeStyle Renovation loan in Boston, MA, can benefit you as you purchase or refinance your home, contact Style Mortgage to learn more. Call us at (508) 223-5206 or visit our website for more information.