If you’ve built up equity in your home, you may already be sitting on the funds needed for your next renovation. A renovation refinance lets you replace your current mortgage with a new loan that includes the cost of home improvements, using the equity you’ve already earned to pay for the work with no out of pocket cost to you.
How It Works
Instead of taking out a separate home equity loan or line of credit, a renovation refinance rolls your existing mortgage balance and your renovation budget into one new loan, based on the “as completed” value of your home after the work is finished. That means you’re borrowing against what your home will be worth once the improvements are done, not just what it’s worth today.
Conventional Renovation Refinance
Fannie Mae’s HomeStyle and Freddie Mac’s CHOICERenovation programs allow homeowners to refinance and finance both structural and cosmetic upgrades in a single transaction. These programs are flexible enough to cover everything from a new roof to a full kitchen remodel.
VA Renovation Refinance
For eligible veterans and active-duty service members, a VA renovation refinance combines the benefits of a VA loan with financing for nonstructural repairs and updates, giving qualifying homeowners a path to a better, more valuable home without a second loan.
You Choose the Contractor
You are free to select your own licensed contractor to complete the work, or choose from a list of contractors already approved by Fairway HOME Mortgage. Either way, our renovation team reviews the bid and paperwork to keep the process moving smoothly.
Upgrades Worth Considering
Based on national remodeling data, these projects tend to add the most value:
- Garage door replacement
- Covered patio and outdoor living areas
- Mid-range and luxury kitchen remodel
- Bathroom and tile updates
- Energy efficient windows, HVAC, or insulation
- Landscaping and exterior lighting
- Added square footage or a finished basement
Let’s Talk About Your Home’s Potential
Every home and every homeowner’s goals are different. Reach out to your Fairway HOME Mortgage loan advisor, Justin Elkins, to talk through your current home and request a consultation on how a renovation refinance could work for you.
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