Could your current home be your dream home with some minor or major renovations? Did you find a home you would like to buy but it doesn’t quite check all the boxes?
A home renovation or 203k loan may be just the thing you need!
Gulf Coast Bank Home Loans offers renovation mortgage loans in areas we serve including metro New Orleans & Baton Rouge as well as Tangipahoa & St. Tammany Parish, Florida & Texas.
Renovation Loan Options
Our 203k and Fannie Mae Homestyle loan options enable borrowers to finance renovations to their current home or finance the cost of purchasing and renovating a new home in one streamlined process.
What Kind of Improvements and Repairs Are Eligible?
Each renovation loan program has its own rules and restrictions. Please contact a loan officer near you for information specific to your needs.
In general, the following improvements and repairs are eligible:
- Room additions
- Bathroom and kitchen remodels
- Repair of structural damage
- Repair or replacement of floors, roofs, plumbing, or HVAC
- Repair, replacement, or addition of decks, patios, porches, and landscaping
- Basement remodeling or waterproofing
This list is just a starting point. Be sure to reach out to one of our mortgage loan originators to discuss your renovation plans.
Should I Use an FHA 203k or Homestyle Renovation Loan?
These two products have a great deal in common. Below are a few of the notable differences between the two programs:
- Homestyle is a conventional loan which means the typical guidelines of a conventional loan will apply including credit, down payment, and debt-to-income ratio requirements. Click here to learn more about conventional loan requirements.
- While Homestyle is generally considered more stringent on credit qualifying than the FHA 203k, it is more flexible in the kind of renovations that are eligible.
- Homestyle requires a down payment and mortgage insurance if your down payment is less than 20%. The actual cost of mortgage insurance will depend on your down payment and credit score.
FHA 203k Features:
- A 203k is an FHA loan which means you can qualify with a down payment of only 3.5%. Click here to read more about FHA loan requirements.
- As with traditional FHA products, you may be able to qualify with more flexible income and credit score requirements.
- More restrictions are placed on the property including eligible renovations, repairs and updates.
Both renovation loans are great options for financing major home repairs and renovations. Each offers a one-time closing option, so you won’t have to go through two separate loan approvals and settlements. This will save you money on closing costs and taxes.
Speak to one of our home loan officers to help evaluate your financial situation and renovation goals to pair you with the best option.
Do You Have Any Questions?
If you want to know if a renovation loan is the right fit for you, we’re here to help!
Gulf Coast Bank Home Loans has branches in metro New Orleans and Baton Rouge as well as Loan Production Offices in Florida & Texas.
If you are ready to get started, you can pre-qualify today.