Your neighborhood is perfect for you and you want to stay for so many reasons… but you need more living space with a more modern design…

Or maybe you’ve found the perfect home in the perfect neighborhood… but it needs some love and attention and you’re ready for the challenge.

There are several options available for people who want to engage in a home improvement or renovation project, but it can get confusing pretty quickly. We recommend you give us a call to discuss your specific needs, but here is some information to get your started:

FHA 203K

A home improvement loan available through the FHA, the 203k loan allows a borrower to take a 30-year fixed NJ mortgage and improve their current residence or renovate a home to purchase. With a 203k loan, you can finance up to 110% of the After-Improved Value.

Improvements allowable through the FHA 203k program include:

• Room Additions
• New Bathrooms
• New Kitchens
• New Windows
• New Roofing and Siding
• New Furnace or Central Air Conditioning

HomeStyle Renovation Mortgage (HSR)

The HomeStyle Renovation Mortgage (HSR) is a Fannie Mae Program that permits borrowers to include financing for home improvements in a purchase or refinance transaction of an existing home.

In other words, it’s a convenient way for borrowers to make renovations, repairs, or improvements totaling up to 75% of the improved appraised value of the property with a first mortgage, rather than a second mortgage or home equity line of credit (or other, more costly financing methods).

A HomeStyle Renovation Mortgage is typically a cost-effective way to renovate or improve a home, and include a few other benefits.

Having a single mortgage means lower closing costs and typically a lower interest rate on a first mortgage.

Borrowers can qualify for a maximum Loan to Value (LTV) of 95% for a single-family home, 85% for a two-family home, and 75% for a three- or four-family home. Community seconds are not allowed.

The loan to value (LTV) amount is based on the “as-completed” value of the home or the cost basis (purchase money loans), whichever is less.