~ Refinance and Renovate based on your FUTURE value – Get out of your FHA loan!!!

Did you know that you can pull future equity out of your house based on the renovations you want to do?


Did you know you can use a Conventional HomeStyle Renovation loan to borrow up to 95% of the AFTER renovated value to pay off your current mortgage AND complete the projects you haven’t had the cash to complete?

With a conventional renovation loan, there is NO mortgage insurance if your new loan amount is 80% or less of the AFTER renovated value, and there are multiple mortgage insurance options for loan amounts between 80%-95%. The great thing about conventional loans is that IF you do have MI it will automatically drop off once your balance gets to 78% of the appraised value used in your refinance.

Here is a scenario of a client who closed an 83% Loan to Value Conventional Renovation Refinance in 2014 after purchasing using a 96.5% FHA loan in 2012 (They NEEDED to renovation but chose to pass on the renovation loan since they were going to do the projects over time as they saved up but found themselves nearly 2 years later with boxes left unpacked “waiting” to save and complete the projects) – Sacramento, CA.

2012 Purchase

  • $156,000 Purchase Price / $161,614 Loan Amount (including financed upfront FHA mortgage insurance and Escrow Repair for required repairs) – HUD purchase – As-Is Appraisaed Value – $155,000
  • $1226.80 monthly payment

2014 Renovation Refinance – Value increased by $125,000 with a $77,000 Renovation Project  – To include complete interior remodel, exterior paint / windows, new electical, heating, lot grading for foundation / exterior settling issues

  • $280,000 After Renovated Value / $234,425 Loan Amount
  • Payoff to 1st Mtg – $157,786.12
  • Renovation Budget – $77,328 (includes closing costs, labor, material, permit costs and a 10% contingency reserve fund)
  • $1597.45 monthly payment

Let’s make a new success story for you!

Call me today to discuss your Renovation Loan Options at 916-235-3989 – I have been helping clients with mortgage loan needs since 1999 and I specialize in FHA 203K & HomeStyle Renovation Loans in California! (Read More about Sheri here)

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