Palestini Home Loans


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Renovation Loan

If you have your eyes set on a fixer-upper but you are worried about arranging funds to buy it and also get repairs performed, then there is a solution to solve all your problems – and then some. Contact Palestini Home Loans and ask for Dawn Palestini. Ask her about Renovation Mortgages and learn fascinating details about programs that can not only cover the costs of purchasing your dream property but also cover the costs for the repairs. With Dawn’s assistance and the benefits of the loan program you have a recipe for a home-dream come true.


What is a Renovation Mortgage?

If a residential property needs to be purchased, repurchased, renovated, or a combination of these, a unique mortgage called a Renovation Mortgage can be obtained collectively for this. The market value of the property generally increases when improvement work is conducted upon a property in the form of renovations or upgrading. Renovation Mortgages are calculated based on estimations of the future value of the property, post-renovation. These loans permit for greater amounts to be borrowed for renovation, while simultaneously increasing the property’s value in the market due to renovations or upgrades.


What are the different types of Renovation Mortgages?

Among the multiple options available for renovation mortgages, Home Style Renovation Loans and FHA 203K Loans are the two most popular ones of the lot.

Even though both loans offer you the opportunity to finance new properties, as well as renovate or even refinance properties you currently own, they both have different guidelines and their eligibilities differ too.

When should a Renovation Mortgage be considered?

While the most common practice is to purchase a new property, this doesn’t always mean that you get exactly what you’re looking for. Sometimes picking a property that requires a bit of renovation is the better way to go. Not only will the property cost less, but with the flexibility to renovate, you would have the opportunity to make the property your own.  Renovation Mortgages come in to play at this point, where not only can you purchase a property, but make any desired renovations and repairs as well. Along with being able to renovate the property to your heart’s content, the value of the property appreciates too. 

Since Renovation Mortgages are based upon “After Renovation Value” or ARV, the value that can be borrowed is much higher. This is because ARV estimates the property at the market value after all the renovations, repairs or upgrades have been completed, therefore much higher than its current standing value. The advantages do not end there. As a Renovation Mortgage can be used to refinance an owned property, it can be used to pay off outstanding on an existing mortgage on the property, even so to cover any closing costs that might be incurred.

As a HUD consultant is required to act as a project manager when availing a Renovation Mortgage, you can set you mind at ease about the renovations and repairs that will be implemented, knowing that they will be overseen by someone who has prior experience in the field and all changes are being supervised by an professional.

Palestini Home Loans

Dawn Palestini
Loan Consultant
NMLS ID #361616
CA Lic. #CA-DBO361616
490 Chadbourne Rd #A172
Fairfield, CA 94534


We've been helping customers afford the home of their dreams for many years and we love what we do.

Xpert Home Lending, Inc.  is a Real Estate Broker Licensed by the California Department of Real Estate DRE #02166758  NMLS: 2179191

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