READY TO LEARN MORE ABOUT
THE FHA LOAN?
Turn a Less Than Perfect Home into Your
Dream Home with a Renovation Loan!
About Renovation Home Loans
What is a construction loan?
- Complete our simple Renovation Loan Qualifier
- Receive options based on your unique criteria and scenario
- Compare mortgage interest rates and terms
- Choose the offer that best fits your needs
BUY A FIXER-UPPER
- Replacing the roof
- Updating the kitchen
- Replacing HVAC or furnace
- Replacing appliances
- Replacing toilets and plumbing fixtures
- Replacing flooring
- Repainting, inside and outside
- Adding square footage
Comparing Renovation Loan Options
LIMITED 203K
EXAMPLES OF ELIGIBLE REPAIRS
DOWN PAYMENT AND LOAN-TO-VALUE (LTV)*
ELIGIBLE PROPERTY TYPES
ELIGIBLE OCCUPANCY TYPES
NUMBER OF DRAWS
ADVANCES
MATERIALS DRAWS
PROOF OF PERMITS
HOLDBACKS
LIMITED 203K
- Updating a kitchen or bathroom
- Replacing fl ooring
- Replacing appliances
- Repairing the roof
- Upgrading HVAC system and other energy effi cient upgrades
3.5% (96.5% LTV)
- 1- to 4-unit properties
- Condominiums (internal repairs only)
- Townhomes (internal repairs only)
Primary
1 initial and 1 final draw per contractor
Up to 50% of repair cost can be distributed at closing when requested in writing prior to close.
Not allowed
Required within 30 days of loan closing
No holdbacks on draws
STANDARD 203K
- Building an addition
- Building a new garage
- Tearing down and rebuilding
- Upgrading mechanical systems
- Installing a well and/or septic system
- Updating the interior
3.5% (96.5% LTV)
3.5% (96.5% LTV)
Primary
Up to 5 draws
Not allowed
Not allowed
Required on or before first draw
10% holdback on all draws, except final draw
HOMESTYLE
- Renovating kitchens and bathrooms
- Updating landscaping and site amenities
- Adding square footage to the home
- Putting in new fl ooring
- Repairing pool and/or spa
1-Unit Primary: 3% (97% LTV) [At least one borrower must be a fi rst-time homebuyer]
1-Unit Primary: 5% (95% LTV)
1-Unit Second Home: 10% (90% LTV)
1-Unit Investment: 15% (85% LTV)
Mortgage Insurance (MI) is required for any LTV that exceeds 80%.
- 1- to 4-unit properties
- Condominiums (internal repairs only)
- Townhomes (internal repairs only)
Primary, Secondary, Investment
Up to 5 draws
Not allowed
Case by case, up to 50% of total materials budget, based on need
Required on or before first draw
10% holdback paid out with final draw
CONTINGENCY FUNDS AND CHANGES TO SCOPE OF WORK
COMPLETION DATE
Contingency funds are intended for unforeseen repairs. Once all items on the bid are completed, contingency funds may be used for additional repairs or applied as a principal reduction.
Work must begin within 30 days of loan closing, may not cease for any 30 consecutive day period and must be completed within six
months of loan closing.
Fairway is not affiliated with any government agencies. These materials are not from HUD or FHA and were not approved by HUD or a government agency.
Why a Renovation Loan?
Fixed-Rate
mortgage
Minimal Down
Payments
Terms of 15-, 20-, and
30-Years Available for
the Fixed-Rate Products
Get Your Renovation Loan Quote Now!
You’ll also be asked to provide additional documentation related to the construction project, like your contract with the builder, construction plans and specifications. You can expect a slightly longer application process due to the additional information that needs to be reviewed.
Consider the following questions when interviewing builders for your project:
- Does the builder have proven experience building the style and quality of home you want?
- Do they meet state licensure and insurance requirements?
- What is their reputation in the community?
- Do they have a good rating with the Better Business Bureau?
- Can they provide references from past clients, suppliers and local banks?
- Is the builder a recipient of any industry awards?
- Are they involved in any professional associations?