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Renovation Loans Can Turn that Ho-Hum Home Into One that Makes Buyers Say, “Oh My!”

July 31, 2020


In markets with limited inventory for sale, buyers are willing to pay top dollar for homes as long as they check every item on their wish list. Updated move-in ready homes seem to sell as quickly as they appear. Unfortunately, this means homes that need a little TLC may be overlooked and buyers who have very specific needs may struggle to find what they are looking for specifically. If your client falls into one of these categories, then a renovation loan from Ameris Bank may be just what your client needs. A renovation loan can turn that ho-hum home into one that makes a buyer say, “oh my!”

One of the biggest hurdles for buyers purchasing a fixer-upper is finding the funds for the renovation and down payment. Today’s renovation loans allow the buyer to finance the cost of improvements and repairs into their mortgage loan with down payments starting at just 3%. Today’s mortgage rates are historically low, providing lower overall costs for renovations.

Depending on your client’s needs, here are a few renovation loan options Ameris Bank offers:
  1. FHA Streamlined 203(k) – This loan program allows homebuyers to finance up to an additional $35,000 into their mortgage to upgrade their home before moving in. The FHA Streamlined 203(k) also offers quick and easy accessibility to cash to fund your home repairs and improvements. Standard FHA loan limits and guidelines apply.
  2. Fannie Mae Homestyle® Renovation Loan – This loan allows both structural and non-structural improvements starting with as little as 3% down. If eligible, the homebuyer can receive financing up to 75% of the as-completed appraised value of the property. The Homestyle® Renovation Loan even allows buyers to finance up to six months of mortgage payments to cover non-occupancy costs during construction. Fannie Mae income limits apply to this loan.
  3. Ameris Bank Portfolio Renovation Loan – For maximum flexibility, the Ameris Bank Portfolio Renovation Loan allows for structural repairs, cosmetic improvements and additions with no income limit and a maximum loan amount of $1.5 million. Down payments start as low as 10% for conforming loans and 20% for jumbo loans. Repairs and construction must be completed within 12 months.

For more information regarding renovation loans options, contact an Ameris Bank mortgage banker.


By: Marlene Sheard

Marlene is a mortgage marketing representative for Ameris Bank and previous sales and marketing president for her local Home Builders Association. She enjoys sharing her experiences for the buying, selling and financing of homes.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All loans subject to credit approval. This document is not a complete description of all eligibility requirements. Additional program restrictions may apply.