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Learn About Refinancing Your Existing Mortgage

Renovations Through Refinance

Atlantic Bay Mortgage - Do's and Don'ts of Getting a Mortgage

Atlantic Bay Mortgage Group® offers many options to help you renovate your home, including Federal Housing Administration (FHA) loans, Conventional loans, and VA loans.

A home equity line of credit (HELOC) offers up to $350,000. A HELOC allows you to utilize the equity in your home to make home improvements, pay for college expenses, pay off other debts, take care of healthcare costs, etc. You’ll be able to borrow up to a certain amount, and can pull from it as you need.

You may be able to refinance your existing mortgage and use the equity to get cash back to make home improvements. When you do a cash-out refinance, you replace your current loan with a larger loan and receive the difference. Equity is the difference in the current market value of your home less the amount you owe. For example, if your home is worth $250,000 and you only have $175,000 remaining on your mortgage loan, you have $75,000 worth of equity.

Home Equity Line of Credit
  • Maximum LTV:
    • 95% owner occupied
    • 89.999% second home
  • Minimum - Maximum Repair Limits: Not limited
  • Minimum Credit Score: 680
  • Mortgage Insurance (MI): No monthly MI
  • Residence: Primary and second homes
  • Repair Type: Not limited
  • Additional Requirements: Maximum combined liens of $1 million. Maximum credit limit of $350,000.
FHA 203(k) Standard
  • Maximum LTV: 96.5%
  • Minimum - Maximum Repair Limits: $5,000 - Max FHA limits in your area up to 100% of appraised value after improvements
  • Minimum Credit Score: 640
  • Mortgage Insurance (MI): Standard FHA MI Premiums
  • Residence: Primary only
  • Repair Type: Complex repairs and renovations allowed
  • Additional Requirements: Maximum of five draws. Architectural exhibits required.
FHA 203(k) Limited
  • Maximum LTV: 96.5%
  • Minimum - Maximum Repair Limits: $5,000 - $35,000*
  • Minimum Credit Score: 640
  • Mortgage Insurance (MI): Standard FHA MI Premiums
  • Residence: Primary only
  • Repair Type: Minor cosmetic repairs
  • Additional Requirements: No draws. Borrower receives 50% of funds at closing and the remaining funds once rehab is complete.

*Maximum renovation limit includes associated fees

Conventional Standard
  • Maximum LTV:
    • 97% Primary
    • 85% Second home
    • 75% Investment Property
  • Minimum - Maximum Repair Limits: $5,000 - No Limit for Freddie Mac or 50% of after-improved value for Fannie Mae
  • Minimum Credit Score: 680, 700 if self-employed
  • Mortgage Insurance (MI): Credit-based MI premiums
  • Residence: Primary, second homes, and investment properties
  • Repair Type: Complex repairs and renovations allowed
  • Additional Requirements: Maximum of five draws. Architectural exhibits required.
Conventional Limited
  • Maximum LTV:
    • 97% Primary
    • 85% Second home
    • 75% Investment Property
  • Minimum - Maximum Repair Limits: $5,000 - $35,000*
  • Minimum Credit Score: 680, 700 if self-employed
  • Mortgage Insurance (MI): Credit-based MI premiums
  • Residence: Primary, second homes, and investment properties
  • Repair Type: Minor cosmetic repairs
  • Additional Requirements: No draws. Borrower receives 50% of funds at closing and the remaining funds once rehab is complete.

*Maximum renovation limit includes associated fees

VA Renovation
  • Maximum LTV: 100%
  • Minimum - Maximum Repair Limits: $5,000 - $35,000*
  • Minimum Credit Score:
    • 640 Purchase
    • 660 Refinance
  • Mortgage Insurance (MI): No MI
  • Residence: Primary only
  • Repair Type: Alterations, minor repairs, and improvements
  • Additional Requirements: Borrower must acquire or already have a VA loan

*Maximum renovation limit includes associated fees

FHA 203(h) Major Disaster Area Program
  • Maximum LTV: 100%
  • Minimum - Maximum Repair Limits: FHA Maximum Loan Limits
  • Minimum Credit Score: 580
  • Mortgage Insurance (MI): Standard FHA MI Premiums
  • Residence: Primary only
  • Repair Type: Complex repairs, renovations and reconstruction allowed
  • Additional Requirements: Available up to one year after disaster to victims of a Presidentially-Declared Major Disaster Area whose home has been destroyed or damaged to an extent it is uninhabitable.

Elligible Repairs

Conventional renovation and the FHA 203(k) loan programs both offer Standard and Limited renovation loan options. Eligible repairs and total cost of those repairs depend on the type of program you choose.

Standard Renovation
  • Repair costs $5,000 - $35,000
  • Complex Repairs and Renovations
  • Most work items are allowed with the exception of luxury and recreational items.
Limited Renovation
  • Repair costs $5,000 and up to FHA or Conventional Loan Limits
  • Minor repairs, improvements, or upgrades that are non-structural including:
    • roofs, gutters, downspouts, existing HVAC system, plumbing, electrical, flooring, paint, siding, windows, doors, insulation, weather stripping, defective drywall, kitchens, appliances, bathrooms, exterior decks, patio, porches, etc.
    • Weatherization
    • Improvements for accessibility for persons with disabilities
    • Minor repairs to well or septic
    • Basement finishing Remodeling and/or waterproofing