If you’re a first time homebuyer, you’re probably unaware of renovation mortgage loan programs. Or even if you already own a home and want to make improvements, this may be the loan program for you.

This is one of those homeowner money saving secrets that is “hiding in plain sight.” And, it applies to both new homebuyers AND existing homeowners who want to renovate.

The “secret” is something called a renovation loan program, offered by Fannie Mae and the Federal Housing Administration (FHA).

These loans save borrowers time and money.

Renovation loans let homebuyers and homeowners finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single affordable mortgage payment. An example might be renovating a kitchen or a bathroom immediately before you move in. Or, refinancing to lower your rate and adding another bathroom to the home.

In either case, the cost of the renovation must be at least $5,000, and the total value of the property must still fall within the mortgage limits for the area.


Renovation loans are a single loan transaction that:
• Enables buyer(s) to purchase and close on a property as-is, regardless of its current condition
• Provides funds for renovation, repairs and/or upgrades (renovation work started after close of escrow)
• Uses after-renovated value to help determine the loan amount
• Do not require that the work be done or paid for prior to close
• Are unlike credit lines, in that they require borrowers to show that the money was spent on the house.


Benefit of the Renovation Loan: To USE SOMEONE ELSE’S MONEY and roll it into one, affordable longer term loan.

My company offers first time home buyer help, as well as the very best mortgage lender knowledge for anyone looking to buy a home in today’s market, or for people who want to renovate. Our clients save an average of $10,000 when using the Mortgage Fee Coach service versus finding the lender on their own.

Call us at (949) 484-6332. The first 15 minutes are FREE. OR email to dan@mortgagefeecoach.com if you have questions. The first two replies are FREE.