The Villages® has been growing since the 1980s, meaning that while many homes are brand new, there are also older homes that could use a refresh. If you’ve fallen in love with an older home that needs some work, or you already own one that’s starting to show its age, a renovation mortgage could be the perfect solution to bring it back to life.
Many buyers overlook these homes because they lack modern updates, but with the right financing, you can turn an older property into your dream home—without draining your savings.
What Is a Renovation Mortgage?
A renovation mortgage is a loan that allows you to buy (or refinance) a home and roll the cost of renovations into your mortgage. Instead of taking out a separate loan or paying for updates out of pocket, you can finance both the purchase price and the cost of renovations in one loan.
Some of the most popular renovation mortgage options include:
1. FHA 203(k) Loan
This government-backed loan is ideal for buyers who:
✅ Need to finance both the purchase and renovations in one mortgage.
✅ Have a lower down payment (as little as 3.5%).
✅ Want to make significant improvements like kitchen remodels, flooring updates, or roof replacements.
2. Fannie Mae HomeStyle® Loan
This is a conventional loan option that allows:
✅ More flexibility than FHA loans, including luxury upgrades like pools or outdoor kitchens.
✅ Higher loan limits, which can be helpful in The Villages®’ real estate market.
✅ Renovations to be completed by a licensed contractor within 12 months of closing.
3. VA Renovation Loan (for Veterans & Their Spouses)
For veterans and their spouses, the VA Renovation Loan offers:
✅ A zero down payment option.
✅ Funding for renovations to bring a home up to VA standards (like accessibility updates).
✅ The ability to finance up to 100% of the home’s future value.
Why Consider a Renovation Mortgage in The Villages®?
As The Villages® continues to grow, some of the older homes—especially those built in the 1990s and early 2000s—are starting to show signs of aging. However, these homes often come with larger lots, prime locations near town squares, and unique charm that newer homes might not have.
Instead of skipping over these properties, consider how a renovation mortgage could transform them:
1. Modernize the Kitchen & Bathrooms
Many older homes in The Villages® have original cabinetry, laminate countertops, and outdated appliances. A renovation mortgage lets you:
🔹 Install granite or quartz countertops.
🔹 Upgrade to energy-efficient appliances.
🔹 Add walk-in showers and modern vanities.
2. Upgrade Flooring & Paint
Many older homes still have carpet throughout, which isn’t ideal for Florida’s climate. A renovation loan allows you to:
🔹 Replace carpet with luxury vinyl plank (LVP) flooring or tile.
🔹 Refresh the home with a modern, neutral color palette.
🔹 Remove dated wallpaper or popcorn ceilings.
3. Improve Energy Efficiency
Older homes tend to have higher energy costs, but a renovation mortgage can help you:
🔹 Install new windows and doors to improve insulation.
🔹 Upgrade to a new HVAC system for better efficiency.
🔹 Add solar panels to lower electricity bills.
4. Enhance Curb Appeal & Outdoor Living
With Florida’s year-round sunshine, having a great outdoor space is a must. A renovation mortgage can help you:
🔹 Update landscaping with Florida-friendly plants.
🔹 Add a screened lanai or pergola.
🔹 Modernize the exterior with fresh paint, stonework, or new siding.
Who Can Benefit from a Renovation Mortgage?
🏡 Homebuyers: If you love the location of an older home but not its outdated style, a renovation mortgage helps you customize it to your taste.
🏠 Current Homeowners: If your home is showing signs of age, refinancing with a renovation loan lets you modernize it without taking out a second loan.
💰 Real Estate Investors: If you’re buying an older home to rent or resell, a renovation mortgage increases property value before you even move in.
How to Get Started
If you’re interested in exploring renovation mortgage options, the first step is connecting with a mortgage professional who specializes in these loans. They can help determine:
✅ How much you qualify for.
✅ Which loan program fits your needs.
✅ The types of renovations that can be financed.
As homes in The Villages® continue to age, renovation mortgages are becoming an increasingly popular way to breathe new life into them. Whether you’re buying or refinancing, this type of loan can help you create a modern, comfortable, and energy-efficient home while keeping your monthly mortgage payment manageable.
Looking for a home with renovation potential? I’d be happy to help! Contact me today.