The above before and after picture is one of many examples of what can be done with a home. So today let's talk about the kinds of repairs and renovations that are eligible under are renovation loan.
The short answer is everything. But to help a homeowner narrow down what they really want to do, you only have to remember these three limitations...
A. What the borrower qualifies for, as this will be needed to get loan approval.
B. What the property appraises for, as it has to appraise for at least the acquisition cost.
C. Program loan limit. This varies by program, for example; the FHA loan cieling for Richmond Virginia is $535,900. So as long as the loan amount does not exceed that, than all is fine.
Beyond those three parameters, a borrower can finance pretty much everything and anything else they would want to do to home, as long as they finance at least the bare minimum to meet local building code. This includes HVAC, electrical, plumbing, additions, baths, kitchens, structural alterations, environmental (mold, asbestos, etc...), flooring, roofing, and on and on.
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