How it works

   Picture this. You're interested in buying a home, and you have your eye on a property that just needs a little work. Better yet, it's a property that you might not have been able to afford ordinarily, but the very fact that it needs some work puts it in your price range. Quite an opportunity, right? The problem is, you might be stuck in a Catch 22 that prevents you from buying that property. Most lenders won't provide a mortgage for properties that need repairs. But how can you arrange for the repairs, assuming they can afford them in the first place, if they you can't buy the property? Fortunately, there's a government-backed loan program designed to help people in that exact situation. A renovation loan not only finances the purchase of a home that needs repair work, BUT ALSO FINANCES THE REPAIR WORK ITSELF!

   Renovation loans have been around for more than 30 years. But they're becoming increasingly popular in the wake of the last decade's foreclosure crisis, when homeowners are walking away from properties that only need a little work. They're not for buyers who are doing the renovation work themselves. They involve hiring a contractor to do the work. But one of our licensed mortgage originators will be on-hand to walk you through the entire process. Renovation loans require a minimal down payment as low as 3.5 percent and have relatively low interest rates. They're also available to borrowers who have lower-than-average credit scores, which make them ideal for first-time homeowners. Although renovation loans enable borrowers to build instant equity in their homes, they aren't designed for "flipping" houses. They're geared toward people who intend to occupy the property they rehabilitate. 95 percent of mortgage lenders are unable to lend on renovation loans. By contrast, AnnieMac Home Mortgage has an entire team dedicated to processing them. We'll be able to get you through the process quickly and efficiently.

We offer a number of different loan options, including:

  • Loans for purchase of a second home.
  • Jumbo loans for high-value properties.
  • VA loans for veterans, which require no down payment and no private mortgage insurance.
  • Federally backed FHA loans, for borrowers with limited funds for a down payment, or past credit problems.



  • Replacing a well.
  • Septic, plumbing or electrical work.
  • Expanding the footprint of a home.
  • Improvements related to disability access.
  • Connecting to public utilities.
  • Finishing basements.
  • Repair/replacement of HVAC systems.
  • Purchase and installation of appliances.
  • Structural repairs/modifications (moving walls, repairing foundations, etc.)
  • Kitchen remodeling

We're available for no-cost consultations.

If you'd like more information about renovation loans what they can do for your clients, and for you please feel free to contact us any time.