Delaware buyers can finance home purchase and renovations in one loan

A Delaware mortgage loan officer is pitching a Fannie Mae HomeStyle Renovation Loan that lets buyers and homeowners roll a purchase or refinance and repairs into one conventional mortgage. The program may appeal to Delaware borrowers who want to update a home without separate financing or long-term mortgage insurance.

Why it matters: - Delaware buyers can use one conventional loan to cover both a home purchase and renovation costs. - The structure can reduce the need for separate repair financing or out-of-pocket savings. - The program can also fit buyers targeting second homes or investment properties.

What happened: - John Thomas, NMLS #38783, described the Delaware HomeStyle Renovation Loan as a Fannie Mae conventional mortgage for buyers and current homeowners in New Castle, Kent and Sussex counties. - The loan is based on the home's expected value after renovations are complete. - The product combines the purchase or refinance and the renovation into one mortgage. - Thomas serves buyers and homeowners across Delaware, including Newark and Wilmington, through the John Thomas Team in Newark.

The details: - A borrower buying a one-unit primary home may qualify with as little as 3% down. - Second homes require at least 10% down. - Investment properties require at least 20% down. - Renovation costs can reach up to 75% of the home's as-completed appraised value. - The 2026 one-unit conventional loan limit is $832,750 in New Castle, Kent and Sussex counties. - Credit scores generally start at 620. - Financing can reach up to 97% of value on a one-unit primary home. - Manufactured homes can qualify, with renovation funds capped at 50%. - All renovation work must be completed by a licensed, lender-approved contractor. - Do-it-yourself or self-help work is not allowed under this approach. - Projects are expected to be finished within 15 months. - The program can cover projects ranging from kitchen updates to larger repairs. - Full program details are available on the Delaware HomeStyle Renovation Loan page.

Between the lines: - The conventional structure may appeal to buyers who want to avoid long-term mortgage insurance. - The loan can also be a better fit than FHA 203(k) financing for second homes and investment properties. - Veterans looking to buy and improve a home may instead consider a VA renovation loan. - Requiring lender-approved contractors tightens control over project quality and draw disbursements, but reduces borrower flexibility.

What's next: - Buyers and homeowners can schedule a call at more information, call 302-703-0727 or apply online at the loan application page. - Thomas said the team walks borrowers through the appraisal and contractor draw process. - The John Thomas Team will continue marketing the program to Delaware buyers searching for homes that need work.

The bottom line: - The Delaware HomeStyle Renovation Loan gives eligible borrowers one conventional mortgage for buying and fixing up a home, which can simplify financing and expand options in a state with many older properties.