Loan amount:
Up to $500,000, subject to credit approval and eligibility.
Most renovation loans are limited to what your home is worth today. Renovation Plus uses your home’s future appraised value after your project to determine how much you may be able to borrow.
If your renovation is expected to significantly increase your home’s value, that difference may mean access to more financing than a standard home equity product would allow. And because Renovation Plus is structured as a second lien, your existing first mortgage stays in place.
Renovation Plus is designed for homeowners ready to invest in a high-end project who need a financing option that can keep up. Projects like:
Eligible properties include single-family primary residences and second homes (Second homes are subject to a maximum loan-to-value of 80%).
Up to $500,000, subject to credit approval and eligibility.
Interest-only payments for up to 12 months while your project is underway.
A fixed-rate Home Equity Loan (HELOAN) or a Home Equity Line of Credit (HELOC).
Second lien. Your existing first mortgage stays in place, no refinancing required.
Both loans are manually underwritten in-house by our Consumer Loan team, concurrently.
A licensed general contractor is required. Borrower may not self-build.
Your banker will walk you through the program, help you understand what documentation you’ll need, and give you an honest read on whether Renovation Plus fits your project and situation
A licensed appraiser estimates your home’s value based on your renovation plans. This appraisal helps determine your loan amount.
Your construction loan and end loan are approved together before any work begins. You’ll know your long-term financing is in place before the first wall comes down.
Your project begins. You make interest-only payments on the construction loan while the work is underway.
Renovation complete. Your construction loan is replaced by your end loan, a HELOAN or HELOC, and your long-term repayment begins.
Renovation Plus is a second-lien construction loan from The Federal Savings Bank for qualified homeowners planning major renovations or additions. It uses your home’s after-renovation appraised value to determine borrowing potential, includes a construction phase with interest-only payments, and transitions to a home equity loan or HELOC end loan once your project is complete.
No. Renovation Plus is structured as a second lien, meaning it sits behind your existing first mortgage. Your current mortgage remains in place.
Qualified homeowners may be able to borrow up to $500,000. The actual loan amount is determined by factors including your home’s after-renovation appraised value, combined loan-to-value ratio, credit profile, and other eligibility criteria. Subject to credit approval. Terms and conditions may apply.
Renovation Plus is built for significant projects on single-family homes, like additions, full room renovations, structural improvements, and major upgrades. It is not designed for minor repairs or cosmetic updates.
An as-completed appraisal is a licensed estimate of your home’s market value based on your renovation plans, meaning what the property is expected to be worth after the work is finished. Renovation Plus uses this figure, rather than your home’s current value, to determine your borrowing potential.
If qualified, yes. Second homes are eligible up to a maximum loan-to-value of 80%, with a minimum of two months’ reserves required.
No. Borrowers may not act as their own general contractor under Renovation Plus. Your builder and project budget go through our standard approval process before construction begins.
Subject to credit approval. Terms and conditions may apply. Property insurance is required.
A HELOC is a revolving line of credit secured by your home. Borrowers can draw upon the credit as needed during the Draw Period and are only required to pay interest on the amount borrowed. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to your individual situation. Closed-end second mortgages, home equity loans, and cash-out refinance loans are not a revolving line of credit like HELOCs, and typically provide a single, lump-sum payment at closing that is repaid with a fixed rate in regular installments over a set term, similar to a traditional mortgage.
Start your application and a Consumer Loan banker will reach out to discuss your project, your options, and next steps.