Looking to buy a high-value home or renovate your current one? A jumbo renovation loan from PrimeLending could be the perfect solution. This unique financing option allows you to combine your home purchase or refinance with renovation costs into one easy loan.
Whether you’re planning to upgrade a fixer-upper in a high-cost neighborhood or remodel your dream home, a jumbo renovation mortgage gives you the flexibility and funds to make it happen—all with just one monthly payment. Learn how this powerful loan can help you create your ideal living space, from start to finish.
What is a jumbo renovation mortgage?
A jumbo renovation mortgage is a home loan option that combines funds for the purchase—or refinance—and renovation costs of a home that exceeds conforming loan limits. Its like a jumbo loan created specifically to help you complete renovation projects and allows you to borrow more than a standard renovation loan.
Since conforming loan limits vary by location, it’s important to talk with a local renovation mortgage expert who understands your market. For insights on jumbo renovation loans in your market, talk to your local PrimeLending loan officer today!
How does a jumbo renovation home loan work?
With a jumbo renovation loan, you can finance a mortgage (purchase or refinance) and renovation costs exceeding area conforming loan limits into one home loan. This could help you buy and renovate a fixer-upper in a high-cost neighborhood or refinance and renovate your high-value home.
Eligibility requirements for jumbo renovation mortgages include:
- 45% debt-to-income ratio (DTI) or lower
- LTV of 80% or 75%
- Higher credit score compared to conventional loans
- Proof of cash reserves
- Full documentation of tax returns, W-2s and 1099s
Why choose a jumbo renovation loan
Whether you live in a high-value housing market or your purchase or refinance cost exceeds conforming loan limits, a jumbo renovation loan can help. By accessing larger loan amounts, you can finance bigger renovations, like a kitchen or bathroom remodel, without breaking the bank.
Benefits of a PrimeLending jumbo renovation loan:
- Loans up to 80% of the home’s value that require 20% down
- Fixed-rate jumbo renovation loans available
- Some jumbo renovation programs allow down payments in the form of a gift
Since the home purchase and renovation financing are rolled into the same loan, you’ll only have one monthly payment to manage, simplifying the process.
What types of renovations can be covered under a jumbo renovation mortgage?
A jumbo renovation loan can be used to cover many of the same home improvement projects that a standard, renovation mortgage does, just on homes with a higher value. Renovation projects covered under a jumbo renovation loan include, but aren’t limited to:
- Kitchen upgrade
- Bathroom transformation
- Landscaping improvement
- In-ground pool installation
Have a vision, but not sure how to bring it to life? Talk to one of our renovation loan experts today to get started!
FAQ: Jumbo Renovation Loans
Can I use a jumbo renovation loan for any home?
A jumbo renovation loan is available for homes that exceed conforming loan limits. It’s perfect for high-value homes in areas with a high cost of living or for fixer-upper properties. Your loan officer can help determine if your home qualifies.
What is the difference between a conventional renovation loan and a jumbo renovation loan?
The main difference is the loan limit. While conventional renovation loans are limited by conforming loan limits, jumbo renovation loans are designed for homes that exceed these limits, allowing you to borrow larger amounts for your home purchase and renovation.
How much can I borrow with a jumbo renovation loan?
You may be able to borrow up to 80% of the home’s value, with a down payment requirement of 20%. Typically, the maximum loan amount includes the cost of renovations and/or repairs—the lesser of $300,000 or 15% of the renovation -completed value. However, the exact amount will depend on the value of your home, your creditworthiness and your ability to meet the loan requirements.
Is a jumbo renovation loan the same as a home equity loan?
No, a home equity loan is based on the equity you already have in your home, while a jumbo renovation loan is specifically designed to finance both the purchase (or refinance) and renovation of high-value homes. It combines everything into one loan for convenience.
Ready to transform your home?
Don’t wait—take the first step toward your dream home today! Apply for a jumbo renovation loan with PrimeLending and unlock the funds you need to buy (or refinance) and renovate your property in one simple loan. Apply Now to get started!
