Considering a home renovation but feeling held back by financing concerns? You're not alone. Many homeowners face this challenge, but there's good news: rehab loans could be the solution you need. One of the financial institutions often inquired about in this context is Navy Federal Credit Union. So, does Navy Federal do rehab loans?
Before we delve into Navy Federal's offerings, let's quickly understand what rehab loans are. Rehab loans, or renovation loans, are specifically designed for home renovations, improvements, or repairs. They roll the cost of repairs and improvements into your mortgage. Now, onto the main question:
Navy Federal's Renovation Loans
Navy Federal Credit Union offers a loan product that might suit your rehab needs. It's called the Homestyle Renovation Loan. This loan, designed for both purchase and refinance, allows you to finance repairs and improvements with your loan amount.
Here's a simple breakdown of the loan:
Eligible Properties
This loan is available for primary residences, second homes, and investment properties. To be eligible, the property must be a single-family home, condo, townhouse, or planned unit development (PUD).
Tip: Ensure that the property meets Navy Federal's minimum property standards and location requirements.
Eligible Improvements
Improvements can be cosmetic, functional, or even include additions. Some examples include kitchen and bathroom renovations, roof repair or replacement, landscaping, HVAC upgrades, or foundation repair.
Important: Not all improvements will add value to your home, so make sure to choose your projects wisely.
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Loans for Rehabbing Investment Properties
If you're a real estate investor looking to rehab properties, it's worth exploring Navy Federal's investment property options. They offer loans specifically designed for investment properties, which might be a fit depending on your goals.
For instance, their Investment Home Equity Loan or Investment Home Equity Line of Credit (HELOC) could provide the funding you need for renovations. However, these are second mortgages, so they come with different considerations than a first mortgage like the Homestyle Renovation Loan.
Loan Amounts
The loan amounts vary depending on the type of loan, the property's location, and the loan-to-value (LTV) ratio. For the Homestyle Renovation Loan, the maximum LTV is 95% for purchase and 90% for refinance.
FYI: To calculate the LTV, divide the mortgage amount by the property value and multiply by 100.
Get in Touch for Latest Details
Remember, loan terms and conditions can change, so it's always a good idea to verify the latest details with Navy Federal directly. You can reach them through their official website, mobile app, or by calling their customer service.
Lastly, always consider your personal financial situation and consult with a financial advisor or real estate professional before making any decisions. Happy renovating!