An increasing number of homebuyers are interested in purchasing homes in need of rehabilitation or renovation, either to live in or sell for profit. There are both conventional and government-backed loan options available to cover the cost of purchase and rehabilitation for qualified borrowers. Whether you are located in Orland or one of the many neighboring cities, Quick Close Loans LLC is here to help you find the rehab financing you need.
Fannie Mae HomeStyle
One of the most popular types of renovation loan is Fannie Mae’s HomeStyle Loan. HomeStyle loans may be used to purchase and rehabilitate a home or to refinance an existing conventional loan to raise funds for home improvements. Fannie Mae is a government-sponsored entity (GSE), but not an official division of the federal government. When you take out a HomeStyle loan, a portion of the funding is designated for rehabilitations only and held in an escrow account. To get approved for this rehab loan, you should have a credit score of at least 620 and raise at least 5% down payment (if you are purchasing a primary residence). You must also submit paperwork from a contractor showing a cost estimate and a detailed plan for rehabilitation work.
Cash-Out Refinance and HELOC
Cash-out refinance is one way to raise cash for rehabilitations to your existing home. Quick Close Loans LLC can help you take out a new, refinanced conventional mortgage for a higher value, and you will receive cash funds for improvements. In exchange for your cash payout, your new mortgage may have a longer repayment term, higher monthly payments, or a combination of the two.
HELOC is a home equity line of credit: a financing contract the provides continuous cash flow for long-term renovation projects. With HELOC, your home is used as collateral, so you give up some or all of your home equity until your loan is repaid.
If you’re interested in learning more about these or other types of rehab funding solutions, Quick Close Loans LLC has answers for you. Contact us today to learn which rehab options you qualify for and to take a closer look at which home financing solution will help you achieve your long-term goals as a homeowner. We work closely with clients through Orlando and nearby Florida communities.