In New Jersey, Heritage Mortgage offers several types of home renovation loans to homeowners and homebuyers. Here are some common options:
FHA 203k Loan
The FHA 203k loan, administered by the Federal Housing Administration, allows you to finance both the purchase or refinance of a home and the cost of renovations. It offers two versions: the streamlined 203k loan for minor repairs and the full 203k loan for more extensive renovations.
HomeStyle® Renovation Loan
The HomeStyle Renovation Loan, offered by Fannie Mae, allows you to finance the purchase or refinance of a home along with the cost of renovations. It provides flexibility for a wide range of renovation projects.
ChoiceRenovation® Loan
The ChoiceRenovation Loan, provided by Freddie Mac, enables borrowers to finance the purchase or refinance of a home and include renovation costs. It offers options for minor repairs and major renovations.
Energy-Efficient Mortgage (EEM)
An Energy-Efficient Mortgage allows you to finance energy-efficient upgrades and improvements in your home. It can be combined with other renovation loan programs to fund energy-saving projects.
Cash-Out Refinance
If you have built equity in your home, you can consider a cash-out refinance. This involves refinancing your existing mortgage for a higher amount and using the extra cash to fund your renovation project.
Home Equity Line of Credit (HELOC)
A HELOC allows you to borrow against the equity in your home. It provides a revolving line of credit, giving you flexibility to withdraw funds as needed for your renovation project.
Personal Loans: Personal loans are unsecured loans that you can use for various purposes, including home renovations. They are based on your creditworthiness and may have higher interest rates compared to other options.
Not sure which one is right for you? Let one of loan specialists guide you on the availability and specific terms, that can vary based on the lender and your financial situation. Additionally, working with a mortgage professional or financial advisor can help you assess your options and choose the most suitable renovation loan for your needs.
