**** Recent Changes - Now completed in 180 days and you to 35% of the “as completed” value!

Product Overview

  • Combines home purchase or refinance (limited cash out) with home improvement financing in one loan with one closing.
  • Provides a convenient way for borrowers to make renovations, repairs, or improvements totaling up to 25% of the "as-completed" appraised value of the property with a first mortgage, rather than a second mortgage, HELOC, or other more costly financing method.
  • Funds can be used for repairs or renovations that are permanently affixed and add value to the property.
  • Single Unit, Primary residence only
  • NO MOBILE/MANUFACTURED HOMES
  • Must be completed within 180 days of funding.
  • Up to 35% of the as complete value (Including contingency).

Conforming High Balance loan limits available where applicable.

Allowable repairs to be done on the property.

  • Repairs and final inspection completed lesser of 180 days or as approved by the Renovation department
  • Maximum repairs 35% of the after complete value.
  • Roof: repair or replacement (covering, underlayment)
  • Gutters/downspouts: install/repair/replace
  • Insulation: ceilings/walls/asbestos removal
  • Siding/windows/doors
  • Paint: interior/exterior/lead paint abatement
  • Kitchen: all appliances/cabinets/ total
  • Electrical: repair/replace/recondition all
  • Plumbing: repair/replace/recondition all
  • Repair/Replace HVAC or other systems
  • Repairing or removing an in-ground swimming pool
  • Installing or repairing fences, walkways and driveways
  • Flooring/subflooring/tile/carpet/wood
  • Termite treatment/damage repair
  • Repairing or replacement of well and septic- *See appraisal section of the guidelines for specific requirements
  • Weatherization items/repairs/ improvements

Foundation Repair

Repairs not allowed by the program.

  • Repairs performed by the borrower
  • No Detached Garages
  • No Swimming Pool Installations. Pool Repairs are allowed.
  • Improvements that do not conform to the surrounding neighborhood
  • Any new construction including room additions.
  • Landscaping or similar site amenity improvements.
  • Rehabilitation activities that require more than two payments per specialized contractor.
  • Major rehabilitation or major remodeling.
  • Require plans or architectural exhibits.
  • Results in work not starting within 30 days after loan closing.
  • Borrower is unable to occupy at closing or within 30 days.
  • Television antenna and satellite dishes.
  • Additions or alterations for commercial use.
  • SFR conversion to a 2 unit

Any structural repairs or renovations that are not foundation or roof repair.

Parties listed below are not eligible to perform the work:

  • Borrower
  • Family Member
  • Borrowers Employer
  • Seller
  • Realtor

Any Interested party to the transaction

Maximum number of contractors: 3

2 Draws, 30% initial and 70% final.

Contingency Reserves

  • A contingency reserve equal to 10% (or may be higher depending on scope of work) of the total costs of the repairs and renovation work must be established and funded for all mortgages to cover required unforeseen repairs or deficiencies that are discovered during the renovation.

20% contingency reserve required when property needs structural repairs, or where utilities are turned off.

Alabama, Alaska, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming