Are you interested in buying a home that maybe needs some extra upkeep and maintenance, or do you already own a home that needs some repair or updated accommodations? If so, you may want to consider getting a homestyle renovation loan, which allows homebuyers and homeowners to renovate their home. If you want to learn more about how a homestyle renovation loan works in Jacksonville, Florida, contact North Star Mortgage Network, Inc.

The Basics of Homestyle Renovation Loans

A homestyle renovation loan is a type of government-backed mortgage that allows borrowers to finance home improvements and remodeling for a home purchase or a mortgage refinance. A homestyle renovation loan combines the actual cost of a home and the cost of home renovations into one mortgage, and is often more cost effective than applying for a second mortgage or a home equity line of credit. The amount you receive for a loan is based on the value of the home after the home is renovated, not on the present value of the home. A homestyle renovation loan can be used for many types of properties, including a one to four unit primary residence, a second home, a manufactured home or condo, or an investment property. The money from the homestyle renovation loan can be used for a variety of renovations such as new appliances, kitchen, bathroom, or bedroom renovations, for landscaping, or for new roofing, flooring, or painting, etc.

The Benefits of a Homestyle Renovation Loan

There are many benefits of financing a home with a homestyle renovation loan. A homestyle renovation loan offers affordable financing and does not require a large down payment. Additionally, the renovations create higher equity in the property. Another great benefit of a homestyle renovation loan is its flexibility, it can be used for a variety of different property types and loan terms. Borrowers who qualify for a homestyle renovation loan will also avoid paying for closing costs and other fees that are normally required with a second mortgage and typically offer lower interest rates than a home equity loan.

Qualifying For a Homestyle Renovation Loan

A homestyle renovation loan is classified as a conventional loan, and the requirements typically include:

• A good credit score, usually 620 or higher
• A low debt-to-income, (DTI), ratio
• You will be required to pay private mortgage insurance if you put down less than a 20% down payment
• Improvements and repairs must be added to the property value

Getting Started With a Homestyle Renovation Loan

If you are interested in purchasing a home that needs some additional TLC or are interested in refinancing your current mortgage to include some extra funds to make home improvements with a homestyle renovation loan in Jacksonville, Florida, North Star Mortgage Network, Inc. can help you with the process. Contact our office today to receive a consultation.