Utah Home Loans | Lower Your Interest, Renovate Your Home
February 24, 2018 801.473.3154dana@utloanofficer.com First Class Home Mortgage (NMLS 1843) | South Jordan, UT

Lower Your Interest, Renovate Your Home


Enough with the fattening chocolate and the overpriced flowers! This Valentine’s day, surprise your spouse by treating your home with LOVE!

Utah refinance and renovateHow long has she been wanting to upgrade that old kitchen? What about adding an extra bathroom to better accommodate your growing family?

No need to use your savings, or tap into your home equity – the HomeStyle Renovation Loan has you covered!


If your current interest rate is not at bottom low, it makes even more sense. 

  1. Lower your interest
  2. Make home improvements or repairs
  3. Keep the same payment
  4. Increase your home’s resale value.


For those of you who have heard of the FHA 203(k) loan, the HomeStyle Renovation loan is a Conventional product, not an FHA one. This means there is no expensive FHA Mortgage Insurance, and not a whole lot of fine print usually associated with government loans.

You can use the HomeStyle Renovation loan for an existing home refinance or even a new purchase, as long as you have 5% equity or down payment, a 620 minimum credit score, and qualifying incomeIt even works if the home that needs some love this Valentine’s Day happens to be an investment property!

The following loan to value restrictions apply, depending on occupancy types

 how much equity do I need for a renovation loan

So what can you do with the HomeStyle Renovation loan?

Pretty much anything you want, as long as the final appraisal value can show the presence of the minimum 5% equity. Here are some ideas of things you can do:

Allowed Home Improvements:

  • Structural alterations and additions

  • Remodeling of kitchens and baths

  • Upgrades to central air/heat, plumbing and electrical systems

  • Minor repairs to existing septic systems

  • Repair termite damage or moisture damage

  • Energy conservation improvements

  • New permanently affixed appliances

  • Addition or replacement of exterior decks, patios and porches

  • Major landscaping and permanent hardscape such as driveways, walkways, retaining walls and fences etc.

Home Improvements Not Allowed

  • Items that will not increase the value of the subject property

  • Improvements for business and commercial purposes

  • Improvements that are not permanently attached to the property

  • Energy efficient repairs which would require additional inspections.


Renovation requirements will be slightly different depending if the renovation amount is over/under $35,000, and whether structural changes will be made to the property:

how long to complete renovation loan

The overall process in 6 easy steps

1. Start your renovation refinance loan application and provide the required documentation

2. Contact any General Contractor for a detailed bid on desired renovations, and submit it to your lender

3. An appraisal is scheduled

4. The lender approves the final numbers

5. Your loan closes/funds and renovation funds are escrowed

6. Based on the amount of the renovations requested, your General Contractor has 3-6 months to complete the agreed-upon repairs.

Okay, so you might not be done by this Valentine’s Day. But the brownie points will still be there!

You can call me at (801) 473-3154 for more information on the HomeStyle Renovation Loan, or e-mail me at dana@utloanofficer.com.

Otherwise, what are you waiting for? Apply online now, and rekindle the spark with your dream home!

Dana Anghel
Dana Anghel
I offer advice in an industry that's inherently secretive and competitive. More than anything, I am a problem solver, and I enjoy taking the hassle out of the mortgage loan process.
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