Delaware Home Renovation Loans – 3 Finance Options to Choose

Delaware Home Renovation Loans – 3 Finance Options to Choose

Renovation loan programs come in all shapes and sizes. Whether you need a few repairs, paint touchups, major reconstruction or some luxury upgrades, the right renovation loan for your project is available. It’s crucial to find the renovation loan program that fits your needs the best. PRMI Renovation Loans offer three great financing options that are tailored to fit the needs of Delaware homeowners. Call 302-703-0727 to explore your options with a renovation specialist or begin the process online – GET STARTED ONLINE.

The three options for Delaware Renovation Loans are as follows: FHA Limited 203k Loan Program, FHA Standard 203k Loan Program, and the Fannie Mae HomeStyle Renovation Loan Program. Each option is explored below:

FHA LIMITED 203(k) PROGRAM

The FHA Limited 203(k) Program is an excellent choice for Delaware homeowners who need less than $35,000 to finance minor home repairs. That includes home repairs (or replacements) like plumbing, roofing, flooring, or insulation.

This FHA-insured mortgage program allows Delaware homebuyers to include an additional $35,000 into their mortgage. You can use that money to make limited upgrades and repairs to your home before you move in. Own a home already? Delaware homeowners can refinance an existing mortgage, adding up to $35,000 for renovations. This program is designed to help homeowners make repairs or upgrades to a variety of things, such as:

roofs
drainage and septic systems
HVAC systems
electrical systems
flooring
plumbing

This FHA program can also be used to buy and install appliances, repair things like decks, and paint.

FHA STANDARD 203(k) PROGRAM

The FHA Standard 203(k) Program is an excellent option if you need to finance major renovations or reconstruction. It’s also handy if you need additional financing for housing costs during the construction process.

The FHA Standard 203(k) program is designed to provide renovation financing for Delaware homes that require major renovations that go beyond what is covered by the Limited 203(k) program. This program covers everything from minor rehabs to complete and total tear-downs. A home is considered eligible as long as the foundation system remains in place. This means Delaware homeowners can finance improvements to the home’s function, elimination of health and safety standards, enhancing accessibility for a disabled person or major landscaping. To make things even better, a homeowner can finance up to six months of mortgage payments into the loan if they need to move out during the construction (this includes some restrictions).

FANNIE MAE HOMESTYLE RENOVATION PROGRAM

Delaware homeowners who want to finance luxury renovations not allowed under FHA guidelines will likely choose the Fannie Mae HomeStyle Renovation Loan. It’s also a critical choice if you’ll need additional financing for housing costs while their home is uninhabitable during the renovation process.

FHA programs provide for renovation projects that improve the home’s functionality and health and safety standards – however, they do not allow for luxury items like new swimming pools, detached garages or gazebos. The Fannie Mae Homestyle Renovation loan allows Delaware homeowners to finance these luxuries in addition to the standard renovations allowed by FHA. The Homestyle renovation loan is best suited to the conventional borrower and contains one application, one closing and one set of fees. You could potentially avoid mortgage insurance by paying 20% down. Borrowers can finance six months of mortgage payments if the house is uninhabitable during construction, similar to the FHA 203(k) Standard program.