Remodel and Rehab Mortgage Loans
Thinking about renovating your home or buying a fixer-upper? A rehab or renovation mortgage loan lets you roll the cost of home improvements into a single loan, making it easier and more affordable to update a property.
Finance Home Improvements & Renovations with Ease.
What Is a Remodel or Rehab Loan?
A loan that finances both the purchase or refinance of a home and the cost of renovations. It allows homeowners to roll remodeling expenses into their mortgage rather than taking out a separate loan. These loans typically have lower interest rates than personal loans or credit cards used for home improvements. A remodel mortgage is ideal for buyers or homeowners looking to upgrade a property without needing immediate cash for renovations.
Why Choose a Remodel Loan?
— Buy & Improve: Purchase a home that needs updates and finance renovations upfront.
— Refinance & Renovate: Tap into your home’s equity to cover remodeling costs.
— One Loan, One Payment: Avoid juggling multiple loans for home improvements.
A HELOC is a revolving line of credit that lets homeowners borrow against their home’s equity. It works like a credit card—you can draw funds as needed and repay them over time. It is best for homeowners with significant equity who need flexible, ongoing access to funds for remodeling or other expenses.
How is a remodel/rehab mortgage different from a Home Equity Line of Credit (HELOC)?
Remodel/Rehab Mortgage
Purpose: Funds both home purchase/refinance & renovation
Loan Type: Fixed-term mortgage
Interest Rate: Typically lower, fixed or adjustable
Payout: Lump sum for specific projects
Best For: Major renovations, especially for new home purchases or refinances
HELOC
Purpose: Funds home improvements or other needs
Loan Type: Revolving credit line
Interest Rate: Usually variable
Payout Borrow as needed
Best For: Flexible access to funds for ongoing or smaller projects