Renovation Home Loans


When you’re looking for a new home, it’s possible that you’ll find yourself standing in front of a beautiful house, only to walk inside and feel like you’ve stepped back in time. That uninviting musty smell, drapes from the 1950’s, and pink carpet just like your great grandma used to have. Or you might experience the exact opposite where the home is great inside, but its curb appeal is worse than the house from The Addams Family.

Make home improvements when you buy a home | Cache Valley renovation mortgages | Logan Utah

Buying a home that needs some work can be discouraging since renovations can cost thousands of dollars. With a normal mortgage loan, you’d have to buy the home and then come up with additional cash to pay for your upgrades and remodels. But our renovation home loans might change the way you look at a fixer-upper because they allow you to include the cost of your renovations IN the mortgage you use to buy the home.

What is a Renovation Home Loan?

A renovation home loan allows you to take a home that needs a little help and turn it into your dream home without breaking the bank. With renovation mortgages you can include the cost of home improvements or upgrades in the same mortgage used to purchase the home. For example if you wanted to buy a $200,000 home and make $12,000 in upgrades, you could combine those costs into one mortgage with a low down payment.

Renovation Home Loan Details

The details and requirements for a renovation home loan are pretty similar to other mortgage programs, but here are some specific details:

1. Down Payment Requirement

The down payment requirement for renovation home loans is very reasonable, starting at just 3.5% of the purchase price.

2. Credit Score Requirement

You’ll need a middle credit score of 620 or higher to qualify for a renovation mortgage.

3. Interest Rates

Interest rates for renovation home loans are pretty similar to other mortgage programs.

3% down payment, 30 year fixed rate mortgage, 6.274% annual percentage rate (as of 6/13/2018)

Home Renovation Loan Options | Cache Valley Mortgage Company | Logan Utah

What Repairs and Upgrades are Allowed?

With a renovation home loan, you have the flexibility to make a lot of different upgrades and repairs to your new home. Renovation mortgages can help you with:

  • Kitchen remodel

  • Home addition - like adding another bedroom

  • New appliances

  • Bathroom renovations

  • Flooring

  • Heating and air conditioning systems

  • Decks and patios