The essentials
Repairs such as a roof, heating, plumbing or electrical work.
Rumson, Monmouth County
Renovation and jumbo loans in Rumson, NJ
For Rumson buyers and owners of older houses and newer ones: one loan for a home and the work it needs, whether you are buying or refinancing, and jumbo loans for larger homes. Fidelity Residential is a direct, licensed mortgage lender with a New Jersey office on Route 36 in West Long Branch.
- Direct, licensed mortgage lender
- NMLS #103098
- Equal Housing Lender
What are you planning?
Pick the closest, or call and talk it through.
Fidelity Residential · NMLS #103098 · Equal Housing Lender
Rumson housing
Single houses, old and new
Rumson has about 7,200 residents and about 2,500 homes, according to the Census Bureau’s American Community Survey estimates for 2020 to 2024. An estimated 92.9 percent of occupied homes are lived in by their owners.
The houses span a long time: some were built in 1939 or earlier, others in 2000 or later. Ask early how the age and condition of a house affect the loan.
Fidelity Residential is a direct mortgage lender licensed in New Jersey under a Residential Mortgage Lender License. Our local office is at 121 NJ-36, Suite 230, West Long Branch.
The homes
- Single houses: an estimated 96.6 percent of homes are single detached houses
- Older houses: an estimated 20.6 percent were built in 1939 or earlier
- Newer houses: about 28 percent were built in 2000 or later
- Larger houses: an estimated 53.6 percent have nine rooms or more, and 29.6 percent have five or more bedrooms
- No mortgage: of about 2,300 owner-occupied homes, an estimated 41.4 percent have no mortgage at all
Source: US Census Bureau, American Community Survey 5-year estimates, 2020 to 2024. Estimates, not counts.
Renovation loans
One loan for a house and the work it needs
A renovation loan is one mortgage that pays for a home and the work it needs, or refinances the home you own and pays for the work, with a single closing. The appraiser values the home as it will be when the work is finished, and the loan is sized on that value, not on the house as it stands today.
Kitchens, baths and more
Updates such as a new kitchen, bathrooms, floors or windows.
Structural work and additions
Larger projects, including structural work and additions, under the programs that allow them.
Renovation loans cannot be used to tear a house down and rebuild it, and they do not pay out cash to you.
Your options
Conventional and FHA renovation loans
The right one depends on the size of the job, whether the work is structural, and how you will use the home.
Conventional renovation loans
The cost of the work can be a large share of the finished value of the home. It can be used for a main home and, in some cases, a one-unit second home.
Renovation loansFHA 203(k) Standard
For larger projects, including structural repairs and additions, on the home you live in. A HUD-approved consultant writes up the work before closing and checks it before each payment to the contractor.
FHA loansFHA 203(k) Limited
For smaller, non-structural work up to a limit HUD sets, on the home you live in. No consultant is needed, and the home must be livable at closing.
At closing, the money for the work goes into an account held by the lender. It is paid to your contractor in stages as an inspector confirms each stage is done. A reserve for surprises is built into the budget.
How it works
From the bid to the final inspection
Plan the work and pick a contractor. Choose a licensed, insured contractor who is not related to you. They give an itemized bid with permits and a payment schedule, and plans or drawings for additions and structural work.
Apply and appraise. You apply as for any FHA or conventional loan. The appraiser uses the bid and plans to value the home as it will be when the work is done.
Underwriting and closing. The underwriter reviews you, the contractor and the project. At closing, the purchase or payoff is made and the money for the work goes into the held account.
Work, inspections and payments. The contractor asks for payment as stages are finished; an inspector checks each stage first. Changes to the plan need the lender’s agreement first. A final inspection closes out the project.
Already own, and want to keep your mortgage? A project paid in stages also fits a home equity line of credit, which you draw on as the work is done while your first mortgage stays as it is. See HELOCs and home equity loans in New Jersey.
Larger loans
Jumbo loans for larger houses
A jumbo loan is a home loan larger than the conforming limit set each year for the county. To see whether yours is one, compare the loan amount, not the price, with that limit; a loan officer can check it for your address.
Each jumbo program sets its own rules for the down payment, credit and the savings you keep after closing, and larger loans may need two appraisals. Jumbo programs do not charge mortgage insurance, and a jumbo loan can be fixed or adjustable. See jumbo loans for higher-priced homes.
Questions
Questions from Rumson buyers and homeowners
Do you lend in Rumson?
Yes. Fidelity Residential is a dba of PFN Lending Group, Inc. (NMLS #103098), which holds a New Jersey Residential Mortgage Lender License. You can check the licence on NMLS Consumer Access (opens in a new tab).
Where is your office?
Our office is at 121 NJ-36, Suite 230, West Long Branch, NJ 07764. Call 732-686-9999 to talk with a licensed loan officer.
Can a renovation loan pay to tear a house down and rebuild it?
No. Renovation loans repair or improve an existing home; they cannot be used to tear it down and rebuild, and they do not pay out cash to you.
Can I do the work myself?
In general, no. The programs expect a licensed, insured contractor, so the work can be inspected and paid in stages.
Where can I live while the work is done?
If you cannot live in the home during the work, some programs let a limited number of mortgage payments be included in the loan. Ask your loan officer which applies.
What happens if the work costs more than planned?
Each budget includes a reserve for surprises. Any change to the plan needs the lender’s agreement first. Reserve money that is not used goes to pay down the loan if it was financed, or is returned to you if you paid it yourself.
Talk with a loan officer near you
Get a quote online, or call us and talk it through with a licensed loan officer.
What happens next
- Tell us about your loan. A few quick questions about the property and the loan you want. No credit check to start and no obligation.
- A licensed loan officer reviews your answers and follows up with you, usually within one business day.
- This is a request for a quote, not a loan application and not a commitment to lend.
This page is general information, not a commitment to lend. Programs, terms and eligibility depend on credit, income, property and underwriting review and are subject to change without notice.
Reviewed by Robert Shamie, CEO, NMLS #241428 · Last reviewed:
Fidelity Residential (PFN Lending Group, Inc., NMLS #103098) is a direct mortgage lender licensed in 40 states and the District of Columbia, with 26 years in business.