Did you fall in love with your dream home, only to find some major repairs or improvements are needed? Don’t stress – Union Home Mortgage offers a loan program for this unique situation. Read more to see if this program is a fit for you!
The HomeStyle Renovation mortgage (HSR) is a rehab loan, allowing you to buy a home in need of repair – or refinance your existing mortgage – and include the funds needed for repairs or improvements in the loan balance. For example, this program could apply if you are looking at buying a house that needs a new kitchen, or if the house will need a new roof, septic tank or other major repair.
Through this program, the house is appraised as improved and you must include the plan for the desired repairs or improvements. This allows you to get approved for a loan amount covering the home’s purchase and the necessary improvements.
As an example, you may have a deal with the seller to buy the house for $150,000 and there is $25,000 of rehab that needs to be done. This makes an acquisition cost $175,000, which then is used to calculate the maximum loan amount.
Thinking an HSR mortgage might be a fit for you? Contact our Housing Buzz Team to learn more about your financing options!