Are you considering a “diamond in the rough” property that doesn’t quite meet your needs, or do you already own one that’s no longer working for you? Summit Mortgage offers a variety of renovation and home improvement loans for both purchase and refinance transactions. These loans allow you to keep your savings intact while making the necessary or desired improvements to help the property better meet your housing needs.
Pros:
- Qualifying is based on the post-completion value of the home or property
- One-time close options lower closing costs
Cons:
- Generally higher interest rates than market rates
- Improvements must be completed by a licensed contractor, and the lender will handle the release of funds to pay the contractor
Best for:
- People who love where they live but need more from their current home
- People looking to purchase a home that doesn’t quite meet their needs in its present state
What are my home improvement loan mortgage options?
There are generally two types of loans available for home renovations or improvements, depending on your situation: a home improvement/renovation loan and a home equity line of credit or loan. Working with a Summit Mortgage loan officer will help you navigate the home remodeling loan options.
Discover home remodeling loans
Summit offers borrowers both conventional and government-backed renovation loan options. These loans can be used for purchasing a home or refinancing an existing home, with renovation costs included based on the home’s value after the work is completed.
Terms for home improvement/renovation loans
10- to 30-year options, primary residence only. One to four-unit homes, manufactured homes, approved condos, and planned unit developments (PUDs) are eligible for financing. Minimum 580 credit score. The minimum repair cost is $5000, and work must be completed within six months. Loans are available for purchase or refinance.
10- to 30-year options, one or two-unit homes, primary residence only. 100% financing options with low rates. Must have VA home loan benefit eligibility. Loans are available for purchase or refinance.
30-year term only. Only available to purchase transactions for one-unit primary residences. Up to 100% financing. 580 minimum credit score. Income limitations and property location qualifications apply.
15- and 30-year term options. Eligible properties include 1–4 unit primary residences, 1 unit second homes, approved condos, PUDS, multi-wide manufactured homes, and 1 unit investment properties. Minimum credit score 620. No repair cost minimum. Luxury improvements may be eligible. Loans are available for purchase or refinance.
Am I eligible for a home improvement loan?
Borrowers may qualify for home improvement loans with:
- A credit score of 580 or higher
- A down payment as low as 0% based on benefit eligibility and location requirements
Is a home improvement loan right for my financial situation?
Schedule a free consultation
A local Summit Mortgage loan officer has the expertise to guide your decision-making process, answer questions, and get you approved for the best home improvement loan program for your unique situation. Find a loan officer who’s right for you.
Calculate your potential savings
Compare different home improvement loan programs with different down payments, rates, and terms to see which one makes the most financial sense for your budget. Calculate your mortgage payment with our calculator.
How do I apply for a home improvement loan?
Applying for a home improvement loan or determining if this type of loan is right for you is simple! Use our Quick Start Form to connect with a Summit Mortgage loan officer who can help guide you through the process.
Curious about what comes next? View our step-by-step application checklist to learn about the process and take your first step toward homeownership.
Is a home improvement loan right for you?
Home improvement loans for first-time homeowners, move-up buyers, or current homeowners for home improvement loans
Renovation loans have no restrictions on being a first-time homebuyer, move-up buyer, or current homeowner. Most programs have purchase and refinance options.
How do home renovation loans stack up to other mortgage types?
Generally, the interest rates are slightly higher than comparable non-renovation products. It’s important to note that these loans are designed for individuals looking to renovate their home with a contractor, with the costs of those improvements financed into their mortgage.
Schedule a free consultation with our mortgage experts
Summit Mortgage employs some of the most experienced loan officers in the country. Our in-depth knowledge of home improvement loans, combined with our commitment to understanding your goals, will ensure your homebuying experience is as smooth and rewarding as possible. Find a loan officer near you.
Next steps to find your home loan
Congratulations, you’re on your way to finding the loan that’s right for you. If you’re ready to get matched with a Summit Loan Officer to help you with the next steps, use our Quick Start Form.
If you’d like more information first, explore our online resources to learn about the key questions to ask your lender.
A Summit Mortgage loan officer will help you determine if today is the right day to start transforming your property into what you want and need it to be.