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    Renovation Loans

    Rolling Renovation & Home Costs into Your Mortgage

    If you’re like most New Jersey homeowners, purchasing your ready-made dream home may not be in your budget. Of the many properties available for purchase, most need a great deal of TLC. When you buy your new home, it may need significant changes. But don’t let the potential renovation costs keep you out of your new home or discourage you from turning your house into the one you’ve dreamt of. We offer the following services to assist your decision:

    • FHA 203K Loans
    • Fannie Mae Homestyle Renovation Loans
    • New Construction Loans
    • Construction to Perm Loans

    You may be able to bundle your projected costs with the price of the home so you can spare your savings account in the future. An FHA renovation loan binds the purchase price of your home, closing costs, home insurance and property taxes, just like any mortgage loan, as well as the expected costs for renovations. Refinancing your current mortgage works similarly. Your current home payoff is recalculated with a lower interest rate, plus the remodeling costs.

    You can wrap nearly any home rehab costs into your NJ home improvement loan, including:

    • Roof repair
    • Plumbing and electrical upgrades
    • Kitchen renovation
    • New flooring throughout the house
    • Bathroom remodels
    • Put on an addition
    • Add a swimming pool
    • Update the backyard

     

    Your NJ home renovation loan will also include a contingency cost of 10 – 20% the estimated cost of renovation, in case an unforeseen expense or the need for extra work arises during your home improvements. Furthermore, First Equity Mortgage can potentially offer up to 110% of your home’s “value after renovation,” giving you plenty of cushion for making the changes you want. And the best part is that this program is available for new homebuyers with as little as a 3.5% for a down payment.

    Sound too good to be true? Believe it – An FHA 203K loan has been available for 30 years. First Equity Mortgage has assisted hundreds of New Jersey homebuyers in assessing their needs for repairs and creating a loan program that works. Anyone refinancing or purchasing a primary residence could be eligible for a 203K loan in NJ. Your eligibility depends on your credit score. While it doesn’t have to be a perfect score, it should be within acceptable range for any FHA loan.