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Remodeling loans for second home

My husband and I want to buy a second home in Hawaii. We would like to get a second mortgage and set a budget for renovations. Might rent out part of the property in the future. what is a loan that would help us? i want to bundle the costs together. by followjessica83228 from Rancho Cucamonga, California. Apr 14th 2015 Reply


William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,933 contributions

Conventional has the "HomeStyle" Renovation loan.. with this loan, you would need to purchase the home and disclose your occupancy intent is an investment. Guidelines require you put at the very least 15% down, and you will be subject to mortgage insurance if you put less than 20% down. guidelines state that if your "Intent" is to rent out the property, even for one day, it's considered an investment purchase and you are subject to investor purchase guidelines.. Understand that these are the conforming guidelines, but each lender will have their own set of rules above what conforming guidelines call for.. it's these "Overlay's" that might prevent a HomeStyle renovation loan on an investment property.. It might even be as tough on a 2nd home purchase.. the best advice I can give you would be to contact a local (Hawaii) mortgage broker.. Not a BANK... Brokers have a vast network of lenders they do loans through ( I have 21), with each lender offering a different set of guidelines.. the more lenders, the more lending choices and the greater likelihood your loan will be approved.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Apr 14th 2015
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Kay Cleland (kay@kcmortgagecolorado.com)
#32 ranked lender in Colorado - 215 contributions

Hello. There are loans available such as the Fannie Mae Homestyle for renovation and also 1x construction loans that may be available to you. I highly recommend that you contact a Local Mortgage Broker in Hawaii and see if they have the programs that will allow for renovation. You can find local mortgage professionals at www.namb.org which is the mortgage professionals national website. enter your state and hit search.

Apr 14th 2015
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,225 contributions

There are several options for financing a true second/vacation home. HomeStyle (conventional) mortgages mentioned by others allow you to buy a home and wrap needed and/or desired improvements into the purchase mortgage and the appraisal is ordered based on the value of the home with the improvements completed. A vacation home will allow as little as 10% downpayment while if you intend to begin renting the home out, even for short term (weekly or monthly) right after completion then it would be an investment property requiring 15-20% downpayment (15% may be difficult to find due to the need to have PMI). Construction-perm mortgages are not available for investment property.Yes, you can use a 2nd mortgage on your current home to obtain cash for the purchase and renovations but the house will be appraised on the current value and will need to meet minimum condition/repair standards right off. If you are going to use a renovation mortgage like HomeStyle I strongly recommend you use a mortgage lender who handles a lot of this type of mortgage. Others who are not very familiar with the requirements and process can easily over-promise on the details.

Apr 14th 2015
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