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Mortgage Applications Set a Record for the Third Straight Week

March 25, 2019


Lower rates are not giving mortgage demand any sizable boost, except when it comes to higher-end homes.

Total mortgage application volume rose 1.6 percent last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 1.8 percent higher than a year ago.

The gains came mostly from refinance volume, which is highly rate-sensitive. Refinance applications rose 4 percent for the week and were 3.5 percent higher than a year ago. Interest rates had been higher last year, but as rates now fall, more borrowers can benefit from a refinance.

“Mortgage rates declined once again last week, as concerns about the slowing global economy and status of Brexit continued to drive investors’ demand for U.S. Treasuries, ultimately pushing yields lower,” said Joel Kan, the MBA’s associate vice president of economic and industry forecasting.

Mortgage applications to purchase a home, however, did not respond substantially. Purchase volume increased 0.3 percent for the week and was 1 percent higher than a year ago.

“Entry-level housing supply remains weak and is likely hindering some would-be first-time buyers from finding a home,” Kan said. “This, along with faster growth in the higher price tiers, is why the average loan application size has risen to a new high for three straight weeks.”

Source: CNBC


Homebuilder Sentiment Holds Steady Despite a Decline in Mortgage Rates

The nation’s homebuilders are feeling positive about their business, but not as much as they did a year ago.

A monthly sentiment measure held steady at 62 from February to March, according to the National Association of Home Builders/Wells Fargo Housing Market Index. The index stood at 70 in March 2018. Anything above 50 is considered positive.

“Builders report the market is stabilizing following the slowdown at the end of 2018, and they anticipate a solid spring home buying season,” said NAHB Chairman Greg Ugalde, a homebuilder and developer from Torrington, Connecticut.

Mortgage rates rose throughout most of last year but have since fallen to below year-ago levels. That should help make all homes more affordable, but new homes come at a higher price than similar existing ones.

Weak affordability has been the biggest problem in the new home market, as builders have largely focused on move-up homes rather than cheaper entry-level products. The median price of a new home sold in January was down nearly 4 percent annually, according to the U.S. Census. That was not necessarily because builders were lowering prices, but because a larger share of entry-level homes sold that month. Sales in January fell to a three-month low.

“More builders are saying that lower price points are selling well, and this was reflected in the government’s new home sales report released last week,” said Robert Dietz, NAHB’s chief economist. “Increased inventory of affordably priced homes — in markets where government policies support such construction — will enable more entry-level buyers to enter the market.”

Builders say they continued to have trouble building lower-priced homes, however, due to shortages of skilled labor and buildable lots.

Of the index’s three components, sales expectations in the next six months rose 3 points over the past month to 71, current sales conditions increased 2 points to 68, and traffic of prospective buyers fell 4 points to 44. Buyer traffic has been in negative territory for several months.

Looking at three-month moving averages, builder sentiment in the Northeast rose 5 points to 48, the South was up 3 points to 66 and the West increased 2 points to 69. Sentiment in the Midwest fell 1 point to 51.

Source: CNBC

Weekly Mortgage Applications Hit a Record, But Not a Healthy One for Housing

March 18, 2019


Mortgage interest rates are now decidedly lower than a year ago, and home shoppers are buying in, but most are wealthier consumers purchasing more expensive homes.

U.S. New Home Sales Hit 7 Month High, Services Sector Rebounds

March 11, 2019


Sales of new U.S. single-family homes rose to a seven-month high in December, but November’s outsized jump was revised lower, pointing to continued weakness in the housing market.


Other data last week showed an acceleration in growth in the vast services sector in February, powered by a surge in new orders. But hiring appeared to be slowing, with a measure of services industries employment dropping to a six-month low.


The moderation in the pace of hiring fits in with expectations of slower economic growth as the stimulus from a $1.5 trillion tax cut and increased government spending ebbs. The economy’s outlook is also being clouded by slowing growth in China and Europe.


The Commerce Department said new home sales increased 3.7 percent to a seasonally adjusted annual rate of 621,000 units, the highest level since May 2018. November’s sales pace was revised down to 599,000 units from the previously reported 657,000 units.


Economists polled by Reuters had forecast new home sales, which account for about 11.2 percent of housing market sales, falling 8.7 percent to a pace of 600,000 units in December.


New home sales are drawn from permits and tend to be volatile on a month-to-month basis. They fell 2.4 percent from a year ago. Single-family home sales rose 1.5 percent in 2018.


The release of the December report was delayed by a five-week partial shutdown of the federal government that ended on Jan. 25.


The housing market hit a soft patch last year amid higher mortgage rates, expensive lumber as well as land and labor shortages, which led to tight inventories and less affordable homes. Reports last month showed homebuilding dropping to more than a two-year trough in December and home resales in January hitting their lowest level since November 2015.


Though house price inflation has slowed and mortgage rates are hovering at 12-month lows, economists expect the housing market to remain weak for a while because of persistent land and labor shortages. Investment in homebuilding contracted 0.2 percent in 2018, the weakest performance since 2010.


The soft housing data added to weak December construction spending, retail sales, factory orders, exports and business spending plans on equipment in setting the economy on a slower growth path in the first quarter.


Source: CNBC


VA loans skyrocket in popularity for first-time homebuyers


Servicemembers are far more likely to opt for a Department of Veterans Affairs mortgage than any other type of loan when buying their first home, a new report from the Consumer Financial Protection Bureau shows.


The CFPB report, the first of its kind, looks at mortgages for first-time homebuying servicemembers, shows that in 2007, servicemembers buying their first home used VA loans approximately 30% of the time. By 2016, that figure had risen to 78%, meaning more than three out of four servicemembers bought their first home using a VA loan.

Conversely, with servicemembers increasingly preferring VA loans, their share of conventional mortgages fell precipitously.


“The greater share of VA loans among servicemembers was part of a larger shift away from conventional to government-guaranteed mortgages between 2006 and 2009 for both servicemembers and non-servicemembers,” the CFPB noted in its report.


According to the CFPB, conventional mortgages made up approximately 60% of all loans among first-time homebuying servicemembers in 2006 and 2007, but this share fell all the way to 13% by 2016.


As for why the shift has taken place, the CFPB said that the features of the VA loan, namely “allowing a purchase with no down payment and without mortgage insurance and providing stronger loan-servicing protections than many other mortgages,” make the loan far more attractive than other options among first-time buyers.


Beyond the frequency at which servicemembers are buying their first houses with a VA loan, the median loan amount on those loans is also rising.


According to the CFPB report, the median servicemember first-time homebuyer VA loan amount increased in nominal dollars from $156,000 in 2006 to $212,000 in 2016, which closely tracks with the median value of conventional home loans taken out by non-servicemembers during that same time.


Additionally, early delinquency rates (the share of loans 60 days or more delinquent within one year of origination) have fallen for both prime and non-prime first-time homebuyers using VA loans.


As the CFPB notes, among non-prime borrowers, VA loan delinquency rates for servicemembers peaked in 2007 at approximately 7% before falling to just over 3% in 2016.


Delinquency rates for prime borrowers using VA loans also fell from 2006 through 2016 as the market improved.


Source: | Ben Lane

Qualify for a Mortgage With Assets Instead of Income

March 6, 2019


If you have funds in the bank, the SmartFunds loan product may be the smart way to qualify for a mortgage. 

The No. 1 Sign That We May See a Cooler Spring Home-Buying Market

March 4, 2019


This year’s spring home-buying season, when the frenzy typically kicks off for the year, appears to be off to a slow start—particularly in and around some of the nation’s most expensive, coastal cities.


That’s because for the fifth month in a row, the number of homes on the market surged 6% in February compared with the same time the year before, according to ‘s recent inventory report. Until last year, the nation had seen several years of housing shortages.


“It suggests that the housing market is starting on a cooler footing this spring than last spring,” says’s chief economist, Danielle Hale. That’s partly a result of the long-term housing shortage that pushed prices up so high, fewer people were able to actually buy a home. “Sales have slowed. … Affordability is a challenge.”

Which markets are seeing the biggest boost in homes on the market?

The big, pricey, tech-fueled cities on the West Coast saw the greatest influx of homes on the market. The nation’s most expensive market, Silicon Valley’s San Jose, CA, experienced a 125% jump in the metro area in February compared with a year earlier. (The metropolitan area includes the main city and the surrounding suburbs.) The median home price in the metro is a whopping $1,079,800—and that’s down 10% from the previous year!


That sky-high price tag is one of several reasons buyers suddenly have more choices in Silicon Valley—if they have the means.


“Prices are so high there that even with a high-paying job, it’s difficult to afford homes,” says Hale. Therefore, residences are taking a little longer to sell.


“Builders are definitely trying to build in that area. Buyers are being a bit more hesitant [to purchase properties], while existing residents who are thinking about downsizing or retiring or moving somewhere else think now is a good time to put their home on the market, while home prices are still high.”


Overall, the most selection is on the high end. The number of homes priced at $750,000 and above shot up 11% year over year in February.


That’s because cheaper properties are most in demand, so they sell fast. And there simply aren’t as many buyers with large-enough bank accounts to snap up the pricey homes.


Source: | Clare Trapasso

Weekly mortgage applications continue to grow as lower rates seem here to stay

It’s almost as if consumers didn’t believe interest rates would stay low, but so far this year they have. Now, finally, consumers are responding.


Mortgage application volume increased 5.3 percent last week from the previous week and was 0.4 percent higher than a year ago, the Mortgage Bankers Association said in its seasonally adjusted index that accounted for the President’s Day holiday.


“Mortgage rates were little changed last week, but as we anticipated, homebuyers are responding favorably to this more stable rate environment,” said Mike Fratantoni, MBA senior vice president and chief economist.


With the spring buying season just getting started, house hunters may be reacting to lower rates, even as prices are still historically high.


Mortgage applications to purchase a home rose 6 percent for the week and were 3 percent higher annually. Purchase demand is still running well below historical norms, however, as today’s buyers are facing the weakest affordability levels in a decade. Home prices are still rising faster than incomes, and first-time buyers are having trouble saving for down payments due to high levels of student loan debt and high rents.


Applications to refinance a home loan increased 5 percent from the previous week and were 3 percent lower annually. Refinance volume cratered last year, so the annual comparisons are becoming smaller, simply because refinance volume has essentially flat lined at this low level. Volume did hit the highest level in a month because jumbo loan borrowers tend to be more responsive to lower rates and banks compete hard for their business, reducing rates.


“Therefore, it was not surprising to see the average rate for a 30-year fixed jumbo loan drop to its lowest level since January 2018,” Fratantoni said.

Mortgage rates were largely unaffected by Tuesday’s testimony from Federal Reserve Chairman Jerome Powell before Congress.


Source: CNBC

Weekly Mortgage Applications Rise, a Sign of Hope for the Spring Homebuying Season

February 25, 2019


Mortgage application volume increased 3.6 percent last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.


Applications to purchase a home increased 2 percent for the week — the first uptick in a month — a sign of optimism in the housing market.


“After four consecutive declines, purchase applications increased almost 2 percent over the week and 2.5 percent compared to a year ago — showing some promise as we edge closer to the spring homebuying season,” said Joel Kan, MBA associate vice president.


Some real estate agents have reported surprise at better-than-expected traffic at open houses this month, and the new numbers seem to confirm those perceptions.


Still, overall volume was 2.3 percent lower than a year ago.


The biggest boost came from applications to refinance a home loan, which are far more sensitive to weekly interest rate moves. The 30-year fixed rate was essentially unchanged. Homeowners clearly saw an opportunity, as refinance applications increased 6 percent from the previous week. They were 8 percent lower than a year ago.


The positive numbers in mortgage application volume are in line with this month’s homebuilder sentiment, which rose 4 points, according to a monthly survey from the National Association of Home Builders/Wells Fargo Housing Market Index. That index showed an increase in buyer traffic, sales expectations and current sales conditions in February.


Builders still point to a concern in affordability, however, which is at a 10-year low, according to the index’s data. There continues to be a critical shortage of affordable single-family homes for sale.


“Ongoing job creation and solid household formations will keep demand firm, but builders will continue to grapple with supply-side headwinds that will dampen more vigorous growth in the single-family sector,” said NAHB chief economist Robert Dietz.


Source: CNBC


Homebuilder Sentiment Rises as Interest Rates Stay in Check


The nation’s homebuilders are feeling better about the state of their industry as lower interest rates boost consumer confidence.


Builder sentiment rose 4 points to 62 in February, according to a monthly survey from the National Association of Home Builders/Wells Fargo Housing Market Index. The survey stood at 71 last February. Anything above 50 on the index is considered positive.


Sentiment fell at the end of last year, largely because mortgage rates jumped in the fall, hurting affordability. Newly built homes come at a price premium to existing homes, so higher interest rates can have an outsize effect on the new construction market. Interest rates then fell sharply at the end of the year and have remained lower this year.


“Ongoing reduction in mortgage rates in recent weeks coupled with continued strength in the job market are helping to fuel builder sentiment,” said NAHB Chairman Randy Noel.

“In the aftermath of the fall slowdown, many builders are reporting positive expectations for the spring selling season.”


Sales of newly built homes have been hard to read, due to the recent government shutdown and delays in reporting from the U.S. Census. Several sources noted a sharp decline in sales toward the end of the year, with a slight improvement in January. Mortgage applications to purchase newly built homes were flat in January compared with January 2018, according to the Mortgage Bankers Association. The cost to build homes continues to be a concern.


“Rising costs stemming from excessive regulations, a dearth of buildable lots, a persistent labor shortage and tariffs on lumber and other key building materials continue to make it increasingly difficult to produce housing at affordable price points,” said NAHB Chief Economist Robert Dietz.


Housing starts and builder permits data have not been reported since last year, but they have been running well below demand and historical averages since the housing crash. While single-family starts are slowly rising, there continues to be a critical shortage of homes for sale, especially at lower, more affordable prices.


Builders are still focused most on the move-up sector of the housing market, as the costs of land, labor and materials continue to run high, making it more difficult financially to build lower-priced homes.


Source: Ben Lane | HousingWire

Investor Loans Make Complex Financial Moves Simple

February 20, 2019


When you’re looking for a home loan, there are many factors that determine the terms and interest rates you’ll receive from lenders. One of these is whether you’re buying a first home or an investment property. Second loans may be more difficult to secure than mortgages for your primary personal home. The issues around securing a second loan are complicated by the fact that some of your finances are tied up in paying for the first house, potentially making lenders hesitant.

If you work with partners that understand and plan for the process of buying or refinancing an investment property, however, you can find options that suit your needs and situation, with favorable terms that will help you make this potentially complex transaction very simple. That is the kind of service you get when you apply for our SmartVest loan, part of the Smart Series aimed directly at individuals with investment properties.

Unique features of the SmartVest loan

When you’re ready to branch out from a first home and start investing in properties, your finances will have naturally grown beyond the state they were in at the time you bought the house where you live. A SmartVest loan takes this more developed situation into account and offers features that work for you. For instance, rather than being based on a debt-to-income ratio calculation, the approval process depends on your cash flow.

SmartVest loans can be flexible, with options ranging from 30-year fixed-rate mortgages to adjustable-rate financing plans with 5/1, 7/1 and 10/1 versions. The loan can cover values of up to $1.5 million, and you may be eligible if your FICO credit score is 640 or higher. By seeking out this loan designed to assist you in assembling a multi-property portfolio, you turn a potentially difficult application process into a focused and streamlined transaction.

Non-traditional loans for any situation

Qualified Mortgages are the default offering in the home loan space, but they’re not right for every situation, due to their relatively inflexible terms. This is where the Smart Series, SmartVest included, shows its true value. When you want to receive features such as an interest-only loan, non-qualified mortgages are the way to find that type of coverage.

When working with your loan officer, you don’t have to limit your scope. Exploring options based on your current financial status may reveal new offerings, including those for people with 2-4 properties under their control, as well as condominium units. Investing in real estate and using this asset as a major source of income is fundamentally different from just owning your own house, and our options reflect this situation, in all its complexity and promise.

The simplified loan process, combined with the specialized and favorable terms, allow you to worry less about getting your investment property funded. SmartVest and the rest of the Smart Series – including options such as SmartCondo for condominium purchases and SmartFunds for situations in which your money is mostly in savings rather than income – show off the best of non-qualified mortgage options. They’re not just different from basic loans but serve as specialized and targeted financial possibilities. 

Older Americans ‘Age in Place,’ Millennials Struggle to Find Homes

February 18, 2019


With more seniors than ever aging in place and choosing not to sell the family home, an estimated 1.6 million fewer properties are now available in a market already experiencing a critical shortage, according to Freddie Mac.


That stay-put trend is crashing into the rising demand for housing from the huge millennial generation: fewer homes for sale will continue to put upward pressure on already overheated home prices.


While some homeowners are choosing to age in place, others simply can’t afford the high costs of moving. Today’s housing market is incredibly pricey, and some can’t afford to move into another home, even a smaller one. For others, the math just doesn’t make moving that attractive.


The homeownership rate among millennials is about 8 percentage points lower than previous generations at their age, according to the Urban Institute. Much of that has to do with delayed marriage, high levels of student loan debt, and a shift toward more expensive, urban living. Still, as more millennials age into marriage and parenthood, their desires to become homeowners increases, and the lack of supply of affordable homes for sale sidelines them.


While the nation’s homebuilders are focusing on so-called 55+ communities, some of these are expensive and not near urban locations. Older Americans want to be close to their children and grandchildren and active baby boomers want to be in walkable communities with activities nearby. For some, downsizing into these communities works well, but for an increasing number, staying in their homes longer now seems sweeter.


Source: CNBC


Multifamily mortgage originations jumped 32% in the fourth quarter


Recently, the Mortgage Bankers Association predicted that multifamily lending was on track to set another record in 2018. And now that 2018 is over, we’re starting to get a look at just how good of a year it was for multifamily lending.


And just as expected, it appears that multifamily mortgage lending finished the year off on a strong note.


A new report from the MBA shows that multifamily mortgage originations jumped 32% in the fourth quarter over the same time period in 2017.


Overall, commercial real estate lending was up in the fourth quarter, climbing 14% over the previous year.


When compared to the third quarter of 2018, the fourth quarter’s numbers look even better.


“2018 ended on a strong note for commercial mortgage borrowing and lending, with fourth quarter originations 14% higher than a year earlier, despite the broader market volatility,” said Jamie Woodwell, MBA’s vice president for Commercial Real Estate Research.


The MBA report also has a first look at the year-end totals for 2018, which show that multifamily lending likely rose 22% last year when compared to 2017.

Total commercial real estate lending was up, but not by nearly as much. According to the MBA report, commercial originations were up 3% in 2018 over 2017.


By property type, originations for multifamily properties increased 22%, originations for industrial properties rose 12%, and originations increased 5% for hotel properties. On the other hand, office property originations fell by 7%, retail properties declined 13%, and healthcare properties decreased by 16%.


The MBA notes that these figures are preliminary and said that final figures will be released in late March.


Source: Ben Lane | HousingWire

Housing Demand is Strong Again – Will it be Temporary?

February 11, 2019


After ending 2018 in a serious slump, demand for housing is suddenly soaring again, thanks to a drop in mortgage rates that could be temporary.

The average rate on the 30-year fixed mortgage rose throughout much of 2018, hitting a recent peak in November. Rates had been much lower throughout 2016 and 2017, which helped produce the run-up in home prices.

When rates began rising again last year, the combination of high prices and higher rates took its toll on sales, which fell sharply in the second half of last year to the lowest level in several years.

But mortgage rates began to slide again in November, falling back even more dramatically in December, when the stock market sold off and the government was on the verge of what would become the longest shutdown ever. That drop in rates is now suddenly registering with buyers and reinvigorating housing demand.

Affordability is still an obstacle

The trouble is that while there are more houses coming on the market, and prices are easing slightly, there are still not enough affordable homes for sale. Supply is increasing largely because homes are sitting on the market longer.

“It’s important to remember that we’re coming off of four straight years of inventory declines that pushed the market to a record low availability of homes for sale,” said Danielle Hale, chief economist of “The real metric to keep an eye on is entry-level homes, which are the key to getting today’s market back in balance. These homes are still in short supply.”

That is in part because of soaring demand from millennials and because after the housing crash, millions of entry-level homes were purchased by investors and turned into single-family rentals, removing them from the overall housing stock.

Homebuilders are not even close to making up for the shortfall. The homes that they are building are largely in the move-up and luxury sectors. But even they saw a jump in demand to start the year.

“Builders in Florida have reported stronger sales in January and are attributing it to the lower mortgage rates,” said Lesley Deutch of California-based John Burns Real Estate Consulting. “Most builders have been surprised at how sensitive the demand is to small changes in the mortgage rate.”

If rates rise again, buyers will likely pull back. So many of them are on the margins to begin with, given today’s high prices. Even small moves price buyers out. More homes are likely to come on the market in the spring, as they usually do, but sellers have less and less incentive if rates rise as well. They would be paying a higher rate to move.

Source: CNBC


Weekly Mortgage Applications Fall Despite Drop in Rates


Mortgage demand continued to weaken, with homebuyers retreating the most last week.

Overall mortgage application volume fell 2.5 percent last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was nearly 10 percent lower than a year ago.

Purchase volume pulled back the most, with those applications falling 5 percent for the week and 2 percent annually. The signals are mixed, as real estate agents are reporting a surge in potential buyer activity through open houses in the past few weeks. Home sales fell at the end of the year, but so did mortgage rates, and agents report seeing higher demand in direct response to lower rates.

“I absolutely think it’s the interest rate, especially when they’re getting a 30-year mortgage and they’re going to be stuck with it for a long time,” said Laura Barnett, a Dallas area real estate agent who was surprised by the crowd of house hunters who came to one of her open houses last Sunday. “They have to make a really wise decision. They can always refinance later if it goes down, but they can never get this rate again if it goes back up.”

“Despite more favorable borrowing costs, and after a three-week surge in activity, purchase applications have slowed over the past two weeks, and are now almost 2 percent lower than a year ago,” said Joel Kan, an MBA economist. “However, moderating price gains and the strong job market, including evidence of faster wage growth, should help purchase growth going forward.”

Applications to refinance a home loan, which are far more rate-sensitive week to week, increased 0.3 from the previous week but were still 19 percent lower than a year ago. Many borrowers already refinanced to rates in the 3 percent range a few years ago, so there is not a lot of incentive now to go through the process. For those who want to take cash out, they are now more likely to take out a second loan or line of credit rather than give up their current rock-bottom rate.

Mortgage rates started this week slightly higher, but then stabilized. There is no major economic data expected later this week to cause more volatility, but there is always the potential for political issues at home and abroad to cause major moves in the bond market.

Source: CNBC

Renovation Loans: Find a Great Home Value or Fix Your Current Home

February 7, 2019


There’s more than one type of home loan available. Each product is uniquely suited to different circumstances, and can help out in ways you may not expect. A renovation loan is one of these specialized mortgage offerings, designed to cover the costs associated with fixing up a home. Such a loan can help out in a few different ways, assisting you in buying a fixer-upper and getting it into top condition, or transforming your current residence for more value, visual appeal or pure comfort and livability.

If you’ve never considered a renovation loan, it’s worth pondering the benefits, and if you have, now’s a great time to learn more. The following are a few of the key points that make these mortgages unique, along with a few great ways to use them.

Fixing Up Your Home

When your house is showing its age or wearing down, there’s ample reason to take action and fix it, whether you’re planning to leave soon or stay for decades to come. Putting a recently renovated and well-kept home on the market is a great way to impress and entice potential buyers. Consider, too, how much nicer it is to live in a house with comfortable and recently improved bathrooms, kitchens and bedrooms than outdated or broken-down spaces.

Refinancing your mortgage through a renovation loan is a great way to get the funds you need for construction, whether you want to add a new bedroom, completely revise your kitchen or change up the fixtures in your bathrooms. New windows, plumbing and kitchen appliances can preserve heat, reduce water use and cut power consumption, respectively, helping your renovation decision pay off.

Finding a Market Bargain

Looking for homes selling for well under market value is a tall order today, but it’s not impossible. One valuable strategy is to look at properties in less than pristine condition, then commit to fixing them up via a renovation loan. Not only does this approach allow you to find bargains, but it also widens your view in general. Are you targeting a specific town, neighborhood or type of house? The right fit for you may be there – just in need of some work.

A renovation mortgage gives you the funds you need to make necessary changes to your new home, turning your new find into the dream home you envision. You get to buy the house and finance the revisions on a single loan, rather than applying twice.

Working with the FHA

Are you in the market for an affordable, approachable home loan? Federal Housing Authority partners offer programs such as the 203(k) mortgage, which lets borrowers finance $35,000 in repairs and renovations. Making a home ready for occupancy is one possible use of the loan, as is renovating a home and boosting its equity.

If you’ve renovated your home significantly enough, the equity in the property may be great enough to refinance into a new type of loan, one that won’t impose extra costs such as mortgage insurance.

No matter where you are in your homebuying or homeownership journey, a renovation loan is an option worth considering for your current or future residence.


Source: FHA