Renovation Loans

J.G. Wentworth is a direct lender of mortgage loans for homeowners seeking funding for homes that require renovations to their property. If you are looking to buy or refinance a home that needs major or minor improvements, J.G. Wentworth is here to help. By providing a streamlined application process, expedited loan turnarounds, and hands-on customer service, we strive to make your renovation mortgage process as simple as possible. We offer a range of home improvement loans with low mortgage rates, making it easier for you to find the program that fulfills your needs. Call one of our knowledgeable loan specialists or fill out our convenient online contact form today to receive a quote in just a few minutes. 


 

Home Improvement Loans Offered by J.G. Wentworth

Fannie Mae Homestyle Renovation Loans

The Basics

If you are interested in purchasing a home that requires major repairs or renovations, one of the optimal ways to reduce your costs is to finance your home using a Fannie Mae Homestyle Renovation loan from J.G. Wentworth. Fannie Mae Homestyle loans allow homebuyers to combine both the price of the home and the estimated cost of necessary renovations into one consolidated mortgage loan, saving a substantial amount money on closing costs. Before Fannie Mae introduced their Homestyle Renovation loan program, homebuyers would rely on second mortgages or home equity to pay for repairs to their home. This is no longer a concern for those who qualify, as Fannie Mae lets you combine both home and renovation expenses into a single mortgage loan.

Fannie Mae Homestyle Renovation Loans allow for both cosmetic and structural repairs to your home and can be used for primary residences with no more than 4 units, single-unit second homes, or single-unit investment properties. The costs that can be included in the loan amount of a Fannie Mae Homestyle Loan include:

  • Cost of the Property
  • Estimated Cost of Repairs
  • Architecture and Design Expenses
  • Energy Assessments
  • Required Inspections
  • Permit Fees

 

Fannie Mae Homestyle Mortgage Specifics

Since home remodel or renovation loans cover more expenses than simply the cost of the home, they typically include specific mortgage terms. Fannie Mae Homestyle Loans are no different, despite being relatively easy to qualify for. Some of the notable aspects of Fannie Mae Homestyle Renovation Loans include:

  • Low Closing Costs
  • 5% Down Payment Requirement
  • Credit Check Requirement for Qualification
  • Options for 15 or 30-year Fixed Interest Rates
  • All Eligible Adjustable Rate Mortgages Included
  • Cost of Home & Repairs Rolled into a Single Loan
  • Renovations Must Add Value to Property
  • No Upfront PMI Payment

Additionally, the Fannie Mae Homestyle guidelines require that the contractor is chosen by you and subsequently approved by J.G. Wentworth. Once all of the prerequisites for financing have been completed and the mortgage contract is signed, your contractor will begin the renovation process. It is important to note that Fannie Mae Homestyle Renovation loans require that the project is completed within six months of the start date.

 

Federal Housing Administration 203(k) Full Rehab Mortgage Loans

The Basics

Similarly to Fannie Mae Homestyle Loans, FHA 203(k) loans offer the ability for homebuyers to lump the cost of their home and the estimated cost of renovations into one loan. One of the primary differences between the two is the fact that 203(k) loans are backed by the Federal Housing Administration, which facilitates easier credit and down payment requirements. When you receive a home improvement loan by way of an FHA 203(k) mortgage, the extra funds for the renovations are set aside in an escrow account, which can be accessed by your contractor as needed throughout the project. FHA 203(k) loans, like Fannie Mae Homestyle, cover both structural and cosmetic repairs to your home. Another notable difference, however, is that FHA 203(k) renovation loans can only be applied to primary residences. 

All repair costs can be combined into the total loan amount along with the cost of the home, so long as the loan amount does not exceed 110% of the future appraised value. FHA 203(k) loans require that the home renovation project is fully completed within six months from the start date. Additionally, certain circumstances allow the cost of six-month temporary housing to be rolled into the loan amount, giving homeowners a place to reside while the project is being completed.

 

FHA 203(k) Full Rehab Mortgage Specifics

Some of the particularities involved with 203(k) renovation loans from the Federal Housing Administration include:

  • Low Down Payment of 3.5%
  • Fixed Interest Rates Available
  • Available Tax Deduction on Paid Interest
  • Insured by FHA
  • PMI Payments Required
    • Upfront PMI Payment of 1.75%
    • Annual PMI Payment between .80% and .85%
  • Less Stringent Income Requirements
  • Loan Cannot be Less Than $5,000

 

Federal Housing Administration 203(k) Streamline Renovation Loans

If you have been shopping around for the right home loan options to help finance minor renovations, the FHA 203(k) Streamline option might be the best fit for you. Like Fannie Mae Homestyle and Full FHA 203(k) loans, 203(k) Streamline Renovation Loans allow homebuyers to combine the cost of renovations with the cost of the home in one loan. The most prominent differences that set FHA 203(k) Streamline loans apart from other renovation loans are the nature of the eligible repairs and the amount that can be spent on home improvements. In other words, FHA 203(k) Streamline loans function just like the Full 203(k) option, but are more limited in scope.

203(k) Streamline loans from the Federal Housing Administration are limited to cosmetic repairs only, ruling out major structural projects. Additionally, FHA 203(k) Streamline loans carry a maximum renovation cost of $35,000. If your project includes either structural remodeling or exceeds this limit of $35,000, you may want to consider a Full FHA 203(k) loan or a Fannie Mae Homestyle Renovation mortgage.

Get a Home Renovation Mortgage Quote Today

If you are in search of a mortgage loan that can cover the necessary renovations needed for your home, you have options. J.G. Wentworth provides multiple choices for home renovation loans, giving you the ability to find the mortgage that fits your specific needs. Our knowledgeable home loan specialists can walk you through any and all options that you qualify for, while providing helpful resources such as our J.G. Wentworth mortgage calculators, all in an effort to make your home renovation mortgage experience as clear and simple as possible. Get your free, no-obligation quote by calling or filling out our convenient online contact form today.