Money for Your Renovation

By Impac Mortgage, Content Sponsor Money for Your Renovation

Evaluating your home improvement funding options isn’t nearly as much fun as choosing cabinets or planning an addition. But thoughtful consideration to these options could help you get everything you want from your project. Use this funding guide to quickly evaluate your options. If you are interested in learning more, please complete the form below to speak with a licensed Impac Mortgage loan officer.

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Cash Reserves

Many homeowners tap their cash reserves to fund smaller home improvement projects. However, you’ll want to be sure you don’t drain your accounts to the point where you can’t cover any fiscal emergencies – experts recommend having enough savings for six months of living expenses.

Credit Cards

Using a credit card is one of the easiest and most accepted forms of payment. Nearly all contractors accept credit cards and it’s a great way to rack up reward points or frequent flyer miles. However, we only recommend using a credit card if you can pay off the balance right away to avoid costly finance charges. If you charge $10,000 and make minimum payments at 12% interest, it will take 25 years to repay the debt, and you’ll pay more than $9,000 in interest for that $10,000 charge.

Cash-Out Refinance

The cash-out refi has helped millions of homeowners finance major home improvement projects by enabling them to tap into their home equity and refinance their existing mortgage into a larger one. And with today’s interest rates, you could find that your monthly payment is lower -- even after you include your project costs. However, there are many factors to consider before moving forward with a cash-out refinance. Talk to a licensed loan consultant to learn whether this option would work for your situation.

203(k) Standard Loan

FHA’s 203(k) program combines a renovation loan with either a refinance of your current loan, or a home purchase mortgage to fund major structural improvements, additions, or remodels.

Imagine, you could get up to *$208,500 worth of renovations. The lender’s renovation lending team helps supervise the project.

203(k) Streamline Loan

When your project will cost $35,000 or less, and doesn’t include structural repairs, use a streamlined 203(k) loan to quickly tap into cash for minor property renovations or upgrades, including appliances.

Home Equity Loan/Line

Expect to pay a higher interest rate than on a refinance. Works best for those who have ample home equity. If your home value falls, the bank can shut down your line mid-project, leaving you without the funds to finish.


*$208,500 is based on a Federal Housing Administration 203(K) loan of $417,000 in Los Angeles County, California – Renovation a mounts will vary by county – contact us for more details.

Excel Mortgage Servicing, Inc. d/b/a Impac Mortgage, Corporate Office located at 19500 Jamboree Rd., Irvine, CA 92612, 800-597-4101. NMLS #128231, AL #MC20787; AK #AK128231 AZ #BK-0910550; California Licensed by the Department of Corporations, under the California Residential Mortgage Lending Act #4131083; Colorado Regulated by the Division of Real Estate; Georgia Residential Mortgage #23673; Illinois Residential Mortgage Licensee; Kansas Licensed Mortgage Company #NOT0025369; Mississippi Licensed by the Mississippi Department of Banking and Consumer Finance; Nevada 7251 West Lake Mead Blvd., Suite 300, c/o Suite 356 & 357, Las Vegas, NV 89128, 702-727-3140, and 10775 Double R Blvd., Suite 121, Reno, NV 89521-8972, 775-682-4385; OR #ML5014; Virginia Licensed by the Virginia State Corporation Commission #MC-5526; and WA #CL-128231. All applications are subject to underwriting guidelines and approval. Not all programs available in all areas. Other restrictions may apply. Registered trade and service marks / illustrations / designs are the property of Excel Mortgage Servicing, Inc. or Mortgage Success Source, LLC. Excel Mortgage Servicing, Inc. is an Equal Housing Lender. Also doing business in AR, CT, DC, FL, ID, IN, IA, KY, LA, MD, MI, MN, MT, NE, NC, ND, OK, OR, SC, SD, TN, TX, UT, WV, and WI.

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