HomeLander Mortgage

Tag: va renovation loans

Summer is Here! Ready To Renovate?
Explore Our Various Renovation Loans

Many Americans across the nation are taking advantage of the boost in equity their house has received over the past few years by renovating their homes. Some have chosen new roofing while others have decided they would like to cut costs and go for solar panels. Maybe you have a newborn on the way and would like to add-on to your home so you can be more comfortable for years to come. Maybe this heat has made your pool dreams become a necessity. Whatever the case may be, we have many loans for renovating from which you can choose. Not sure which reno loan is best for you? No worries. Simply give us a call and we will guide you to the best renovation loan for you and your family.

Summer is almost here! Get those renovations done before school starts again! Our renovation loan products are perfect for fixer-uppers or older homes that need updating! We have multiple loan options that will suit your needs.

CONVENTIONAL RENOVATION LOAN

If you don’t fall under the VA, FHA, or USDA Loan for renovating program requirements, our Conventional Loan for renovating is available to all who qualify! You can use our conventional renovation loan to purchase a home that needs repairs/updates or refinance a home you already own and add the cost of renovations to your loan balance with a single mortgage closing. Ask us how!

CONVENTIONAL RENOVATION LOAN FEATURES
- 620 minimum qualifying credit score
- Maximum LTV up to 97%
- Repairs or additions can be structural or non-structural
- Eligible property types:
  1-4 Unit Primary Residences
  1-Unit Second Homes
  PUD’s
  Multiwidth Manufactured Homes
  Approved Condos
VA RENOVATION LOAN

If you are a veteran, active duty, reserves, national guard service member, or a surviving spouse receiving VA compensation, our VA Loan for renovating may be a perfect fit for you. You can use these loans to repair or update a home that you already own or purchase a new home and roll in the cost of the renovations at closing. You can add the cost of renovations to your loan balance with a single mortgage closing.

VA RENOVATION LOAN FEATURES
- Renovations and repairs up to $100,000
- 580 minimum qualifying credit score
- Loan-To-Value up to 100%
- Home must be habitable during renovation
- Repairs must be non-structural
- Perfect for those looking to do repairs such as repainting, upgrades, fixture updates, or adding accessibility for disabilities such as ramps and rails
- Conforming Loan Limits only
- Eligible property types:
  1-2 Unit Primary Residences
  Multiwidth Manufactured Homes
FHA RENOVATION LOAN

Our FHA Loan for renovating is perfect for those who qualify! You can use the loan to purchase a home that needs repairs or updates, or refinance a home you already own, and add the cost of renovations to your loan balance with a single mortgage closing.

FHA RENOVATION LOAN FEATURES
- 580 minimum qualifying credit score
- Loan-To-Value – Purchase 96.5%, Refinance 97.75%
- Repairs or additions can be structural or non-structural
- HUD consultant is required
- Eligible property types:
  1-2 Unit
  Manufactured housing
  FHA HRAP Approved Condos
  Site Condo
  PUDs
  HUD REO
USDA RENOVATION LOAN

Do you live in one of the designated areas for USDA loans? If yes, then it may be the perfect fit for you. You can use the loan to purchase a home that needs repairs or updates and add the cost of renovations to your loan balance with a single mortgage closing (refinances are not allowed). The USDA loan program has location and income restrictions. If you do not know whether you live in the designated USDA areas, we will be happy to look it up for you.

USDA RENOVATION LOAN FEATURES
- 580 minimum qualifying credit score
- Loan-To-Value up to 100%
- Repairs or additions can be structural or non-structural
May 31, 2022
Yes, We Have Construction Loans for Veterans
Veterans who retire from military service, active duty service members, and members of the National Guard and Reserves often can qualify for VA Construction Loans to help them build and finance a home from beginning to end. The VA Construction Loan is also known as the VA One-Time Close Loan (OTC) for a reason. This type of loan product allows qualified borrowers the ability to construct their own homes utilizing an all-in-one lending product.

The VA One-Time Close Construction loan program delivers interim construction financing, land purchase (or payoff), and the permanent mortgage loan – all wrapped into one. A single loan offers both the construction loan and the permanent mortgage within a single loan closing. This type of loan also allows veterans to lock in their interest rate at the time of approval before construction begins, and this rate is good until it converts to a permanent loan.

Borrowers only need to qualify once. Instead of providing qualification documents such as pay stubs and tax returns twice, with this type of loan, veterans only have to prove that they can pay the construction loan and mortgage once.

Importantly, since conventional mortgage loan closing costs can be a significant expense to borrowers, the ability to just close one loan saves thousands of dollars having to close a second time. A traditional construction loan usually requires two sets of appraisals – by separate appraisers. With a one-time close construction loan, one appraisal saves the borrower money.

In summation, since the permanent loan is closed before construction begins, there is no need for re-qualifying for financing when it comes time to move on from construction to the permanent loan. This also means that there is no need for re-appraising, there’s only one underwriting process, and one set of closing costs. As such, this loan product provides interim construction financing, lot/land purchase or payoff, and the mortgage loan all in one.

In order to obtain this type of loan, qualifying veterans much follow this Loan Process:
1. Make contact with VA Construction Loan Advisors to determine the best home loan for individual needs.
2. Complete an application
3. Receive a Pre-Approval Letter
4. Select a builder that is then approved by the lender
5. Determine where to build
6. Create the Construction Contract
7. Submit to your Loan Advisor
8. Processing/Underwriting
9. Appraisal
10. Project Review
11. Final Loan Approval
Other advantages of a VA Construction Loan include no down payment for qualifying veterans who have at least a 620 credit score, no required private mortgage insurance (PMI), 100% financing, low fixed rates locked for the life of the loan, and no mortgage payments while construction is ongoing.

As the VA does not lend directly, veterans need to find their own lender. HomeLander Mortgage is a one-stop-shop for all mortgage needs – including the VA Construction Loan. With so many advantages to this type of loan, HomeLander Mortgage can help and guide veterans every step of the way. Schedule a call to begin the process at www.homelandermortgage.com
May 9, 2022
What You Need To Know Before Renovating
Home renovation loans, also known as Home Improvement loans, are a way for homeowners to finance their fixer-uppers or older homes that need updating. These loans cover the entire renovation project – and yet many potential borrowers don’t know that they are an option – let alone how they work.

Whether it’s a kitchen or bathroom renovation project, adding on a home office, or installing a new roof, major home improvements require a sound budget. Home renovation loans provide funding for renovating, remodeling, and repairing a home. It can be thought of as a mortgage that includes extra money for home improvements.

Borrowers who may benefit from a home renovation loan are contemplating home improvement ideas.
- Are you looking to modernize a kitchen or bathroom(s)?
- Are you looking to remodel a home to fit your lifestyle and family needs?
- Are you wanting to add one or more rooms to the house?
- Are you contemplating the purchase of a home with a low asking price but in need of serious work?
Additionally, these types of loans give more homeowners and/or borrowers more control over building equity. By making improvements and substantial upgrades, these projects will improve the value of the property in the long run.

Some types of home renovation loans available include conventional renovation loans, FHA renovation loans, USDA renovation loans, and VA renovation loans.

Conventional Renovation Loans at a glance:
- Low fixed rates that are locked prior to closing and guaranteed.
- PITI (principal, interest, taxes, and insurance) payments are due during the renovation period.
- Closing costs can be rolled into the loan. Ask us how.
- 97% financing available
- 620 minimum FICO score required
FHA Renovation Loans at a glance:
- Low fixed rates that are locked prior to closing and guaranteed.
- PITI (principal, interest, taxes, and insurance) payments are due during the renovation period.
- Closing costs can be rolled into the loan. Ask us how.
- Up to 96.5% financing available
- 620 minimum FICO score required
VA Renovation Loans at a glance:
- Low fixed rates that are locked prior to closing and guaranteed.
- PITI payments are due during the renovation period.
- Closing costs can be rolled into the loan. Ask us how.
- 100% financing available (90% on refinance transactions)
- 620 minimum FICO required
- Repairs must be non-structural
USDA Renovation Loans at a glance:
- Low fixed rates that are locked prior to closing and guaranteed.
- PITI payments are due during the renovation period.
- Closing costs can be rolled into the loan.
- 100% financing available
- 620 minimum FICO score required
While they are similar in that banks and other approved lenders issue them, they differ greatly in type and who qualifies.

The Federal Housing Administration insures FHA-Insured Loans. Though the FHA does not have income requirements, borrowers need to prove their income, and there are limits on loan amounts.

VA Loans are available to veterans who have served or are currently serving in the armed forces, reservist/national guard members, or an eligible surviving spouse. The Department of Veteran Affairs guarantees these types of loans. Borrowers must also have a Certificate of Eligibility (COE). The COE proves that the applicant officially meets the minimum military service requirements. This type of loan is only available through certain VA-approved lenders.

The U.S. Department of Agriculture (USDA) loans are for homes in rural areas, though many other suburban communities and locations are also able to qualify. The loan is subsidized through the USDA. Borrowers must demonstrate stable income and the ability to make payments without incident for at least 12 months based on assets, savings, and income.

HomeLander Mortgage will be there every step of the way to help borrowers determine which type of renovation loan is appropriate to their budget, needs, and qualifications. Schedule a call to begin the process at www.homelandermortgage.com
May 9, 2022