Renovation Loans


Get up to 100% renovation loans. One-time close, cloud-based draw managment software, dedicated in-house account manager.
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Mann Mortgage is proud to announce our "Dreams with Beams" program, which gives borrowers a better option for renovating the home of their dreams. When you utilize a MannMade Renovation Loan, you’ll gain access to our collaborative, cloud-based renovation loan software to manage the entire project from start to finish while simplifying communication between you, the builder, 3rd-party inspectors, and title companies. We manage your loan and the builder relationship in-house, and you'll work with a dedicated account manager throughout the renovation process.

What are renovation loans?

A home renovation loan is a type of mortgage designed to finance either a purchase or renovation of a fixer-upper home. Unlike traditional mortgages, the renovation loan’s interest rate is based on the value of the home after renovation is complete. This allows homeowners to tap into their future equity to get the lowest interest rate possible. Renovation loans can also be used to refinance and renovate a home the borrower already owns.

Renovation Loans Quick View

  • Up to 100% financing for USDA and VA
  • Lower credit score qualifying
  • Down payment of 3% - 5% for single-unit homes for conventional and FHA
  • Home appraisal, inspection, and plan approval required
  • Cloud-based, single login project management software
  • Home appraisal, inspection, and plan approval managed in-house
  • Require refinance or purchase of a home
  • Renovations must be completed within 6 months of closing by an approved contractor
  • Simple & secure online application

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Update a primary residence fixer-upper with a 203K renovation loan

203K loans are guaranteed by the Federal Housing Administration (FHA) and are often used by families in low- to moderate-income brackets to purchase or refinance a primary residence in need of repair. The funds can be used for minimum repair work such as adding a new room or landscaping. It can also be used for repair that’s more extensive such as plumbing, kitchen remodeling, or accessibility improvements for people with disabilities. However, anything considered a luxury is not allowed. The FHA defines “luxury” items as things like tennis courts, swimming pools, hot tubs, and outdoor kitchens.

The main benefit of a 203K home renovation loan is the lower credit score (640), down payment (3.5% minimum), and debt-to-income ratio (50%) than our conventional HomeStyle loans allow. However, anyone with a 203K renovation loan will pay mortgage insurance premium (MIP). It’s 1.75% of the loan amount upfront then 0.8% spread out in monthly payments for the life of the loan.

Oregon home with contractors renovating kitchen

Restore an old home or get a dream home with a HomeStyle renovation loan

HomeStyle loans are guaranteed through Fannie Mae and have a more restrictive credit score minimum (680), down payment (5%), and debt-to-income ratio (45%) than a 203K. However, they have much more relaxed restrictions on the types of renovations that can be done. Funds can be used to remodel a primary, secondary, or investment property. And they can be used to finance a wide range of renovation projects, from repairs and modifications to pools and outdoor kitchens. Borrowers can use the funds to restore an old home to its original glory or take a neglected house and make it their dream home.

Mortgage limits are capped at $548,250 to $822,375 depending on the area a home is located in. There is no upfront MIP, but without 20% equity in the renovated home, a borrower will have to pay monthly MIP payments for a period (or until they reach 20% home equity).

Which home loan option is right for you?

It can be hard to determine which option is best for you. Your credit score, amount of down payment, scope of your project, and final costs all need to be considered. If you have enough equity in your home, a cash-out refinance may be preferrable to a home renovation loan. If you’d like to purchase a fixer-upper or if you’d like to make improvements to your current home, contact your local Mann Mortgage professional to go over all the loan options available to you.

If you’re interested in purchasing or refinancing a home in Hood River or accross Oregon, I can help you make it happen. Please contact me today or apply online in less than 10 minutes using the secure online application below.

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Bernie Dittenhofer Hood River home loans

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