Austin Jumbo Renovation Loans
Your dream home awaits with a PrimeLending Jumbo Renovation Home Loan.
What is a Jumbo Renovation Loan?
Jumbo home renovation loans fund basic renovations and repairs such as kitchens, bathrooms, swimming pools, outdoor living spaces, basement/attic finishes, and hardscapes (e.g., exterior walls, walkways, etc.). They can be used for repairs required by an appraiser or asked for by the borrower. They cannot address structural issues. The spending must go to items attached to the home that add value. The maximum amount for repair or renovation cannot exceed the following:
- 30% of the completed renovation value
How does it work?
Jumbo home renovation loans combine a home purchase or refinance with a renovation outside the limits of typical lending. In most states, the cap on “conforming” home loans is $548,250. This is the upper dollar limit financed by everyday investors like Fannie Mae and Freddie Mac.
Defining Jumbo Renovation Loans
As the name implies, Jumbo renovation loans can be used to pay for and renovate homes of higher value. A higher-value home can have higher repair costs. Repairing an extensive plumbing system as a condition of purchase or renovating a more expansive kitchen can be expensive. These expenses can fall upon the person looking to buy the property or the current owner looking to refinance.
The jumbo renovation loan works similarly to conventional renovation products – the lender takes the money for the purchase or refinance, adds renovation funds, and rolls it into a single home loan. Benefits include:
- One balance
- One interest rate
- One round of closing costs