A home renovation loan is a specialized mortgage that combines the cost of purchasing or refinancing a home with the funds needed for repairs and upgrades.  Unlike traditional loans, it allows you to borrow based on the after-renovation value of your property, making it ideal for homes that need work. 

Popular types include:

-FHA 203(k) Loan: Government-backed for moderate to major renovations, with low down payments. Perfect for first-time buyers or those with lower credit scores.

-Fannie Mae HomeStyle Renovation Loan: Conventional option for luxury upgrades, energy-efficient improvements, or even adding pools/accessory units. Requires a minimum 3% down payment.

-VA Renovation Loan: For eligible veterans, offering no down payment and covering repairs up to $50,000+.

-Other Options: Jumbo renovation Loans for high-value properties in Orlando's booming market or Pensacola's waterfront areas. 

These loans cover everything from structural repairs (e.g., roofs, foundations) to cosmetic updates (e.g., kitchens, bathrooms) and even disaster recovery for Florida's hurricane-prone regions. 

Why choose a RENO loan over separate financing? Here's how it sweetens the deal? 

• All-in-One Financing: bundle purchase/refinance and renovation costs into a single loan with one monthly payment - no need for high-interest credit cards or personal loans. 
• Build Equity Instantly: Borrow against the future value of your improved home, potentially increasing your property's worth by 10-20% or more in hot markets like Orlando. 
• Flexible Use: Fund essentials like HVAC systems, energy-efficient windows, or fun additions like outdoor kitchens-up to 75% of the home's post-renovation value.
• Tax Advantages: Interest may be tax-deductible (consult a tax advisor), and Florida, no state income tax means more savings. 
• Local Expertise: In Orlando, leverage rising home values from tourism growth; in Pensacola, prepare for coastal resilience with stormproof upgrades.
• Low Rates: 

Clients love the convenience: "Avi made our Orlando kitchen remodel seamless--financed everything without surprises!"

Satisfied Homeowner

Qualifying is straightforward, but requirements vary by loan type, General guidelines: 

• Credit Score: 580+ for FHA; 620+ for conventional
• Down Payment: 3.5% for most programs (0% for VA).
• Debt-to-Income Ratio: 
• Home Appraisal: Avi Bastajian and his Team will order a 3rd Party Appraisal
• Contractor Requirements: Avi Bastajian and his Team will go over this with you and guide you step by step.
• Property Type: Single-family homes, condos, or multi-unit properties (up to 4 units) in eligible areas of Orland or Pensacola. 

Not sure if you qualify? We'll review your situation in a no-obligation pre-approval process tailored to Florida's market.

From concept to completion, we guide you every step of the way:

1. Consultation: Discuss your project goals, budget, and timeline with Avi Bastajian--your local expert in Orlando and Pensacola.

2. Pre-Approval: Submit basic docs (income, credit, assets) for a quick approval letter.

3. Property Selection & Appraisal: Avi Bastajian and his Team will guide you through this step.

4.Bid Submission: Get detailed bids from contractors; we help coordinate.

5. Loan Closing: Funds are escrowed, and renovations begin under supervised draws (e.g., payments released as work progresses).

6. Project Completion: Final inspection ensures everything meets standards-- typically 4-6 months for most projects.

7. Enjoy Your New Home: Move in or refinance with built-in-equity.

Pro Tip: In hurricane season, prioritize resilient upgrades like impact windows to qualify for insurance discounts in Pensacola. 

• How much can I borrow for renovations? Up to 110% of the after-repair value, minus your down payment.
• What if my project goes over budget? Contingency funds (10-20%) are built in, but overruns may require additional approval.
• Can I DYI the work? Limited--most programs require licensed contractors for major items.
• How long does approval take? 30-45 days, faster with complete documentation.
• Are there fees? Expect appraisal ($500+), inspection ($300+), and possible consultant fees for complex projects.
• What's the difference from a HELOC? RENO loans are for purchase/refi with built-in repairs; HELOCs are lines of credit on existing equity.