Mortgage Network has launched a jumbo renovation loan program that offers homeowners financing for the purchase or refinance of a home as well as renovation costs all in one loan.
The program offers borrowers loan amounts that exceed Fannie Mae and FHA county loan limits, including limits in areas designated as high-cost. To be eligible for the program, homes must be single-family, the borrower’s primary residence, and located in Massachusetts, Connecticut, and New Hampshire.
“The Northeast has some of the oldest housing stock in the country and also some of the most expensive homes,” said Laurie Souza, national business development manager for portfolio and renovation lending at Mortgage Network. “We felt there was an underserved market and a need to offer home improvement financing that allowed for loan amounts exceeding the Fannie Mae and FHA limits, while also allowing for features that typically fall outside of the box of traditional construction-permanent financing programs offered by community banks.”
The program can be used for any improvement type as long it is permanently affixed to the property and adds value. While renovation costs exceeding $50,000 require a licensed general contractor to supervise the work, a plan reviewer or HUD consultant is not required, unlike in traditional renovation loans.
Borrowers can take out loans under the program with down payments as low as 10% based on either the lesser of the property acquisition cost or the home’s appraised value after the improvements.
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