We often get asked, “How should I pay for my project?” and, while we don’t presently offer direct-to-consumer financing, we thought it might be helpful to provide some general information on where to possibly obtain funding for typical residential construction projects.
We do not endorse any specific method or provider.
Subject to error and revision.
FHA Title 1 Loan
For home improvements, repairs and rehab. Fixed-rate only. Loans under $7,500 are usually unsecured. Larger loans will require collateral. Max $25,000 for a single-family home. Other options for manufactured housing.
Limited 203(k) Mortgage
For select, approved home improvements, repairs and rehab. Up to $35,000.
Standard 203(k) Mortgage
Used for major work and repairs. Minimum of $5,000 but the total value of the property must remain within the FHA mortgage limit for the area.
Fannie Mae HomeStyle® Renovation Mortgage
Has higher loan limits. May finance up to 50% of the as-completed value of the home with a first mortgage. Swimming pools, sun rooms, ADUs, and outdoor living spaces may be allowed.
Home equity loans (HELOC)
Often offers lower rates and longer repayment terms. Limited by approval parameters set by provider.
Cash-out Refinancing
Refinance existing mortgage into a larger loan. Rates vary by lender, loan amount and the equity in the home. Interest payments may be tax-deductible.
Personal Loans
Unsecured, with fixed rates and payments. Typically quick approval. May offer soft credit checks and provide terms with no impact on credit score.
**This information is provided for reference purposes only. Any terms, agreements, or conditions for financing are to be arranged directly between the consumer and their selected provider. Andecraft, LLC, is neither a broker nor a lender and does not assist with, facilitate, recommend, or negotiate financing in any manner. All users assume sole automatic liability for the use and/or referencing of any of the provided material or information.
