FHA 203(k) Limited
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.
Renovation loans
Union County, New Jersey
Older homes and renovation loans in Union County, NJ
For Union County buyers and owners of houses built before 1960: what the appraisal looks at on an older house, one loan for a home and the work it needs, and paying for work on the home you already own. Fidelity Residential is a direct, licensed mortgage lender with a New Jersey office on Route 36 in West Long Branch, in Monmouth County, and we lend across New Jersey.
- 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
Union County housing
Houses from the 1940s and 1950s, and two-family homes
Union County has about 212,400 homes and about 579,300 residents in the Census Bureau’s American Community Survey estimates for 2020 to 2024. An estimated 57.4 percent of occupied homes are lived in by their owners, and their estimated median value is about $529,200.
More than half the homes, about 58 percent, were built before 1960: an estimated 22.0 percent in the 1950s, 12.3 percent in the 1940s and 23.5 percent in 1939 or earlier.
Fidelity Residential is a direct mortgage lender licensed in New Jersey under a Residential Mortgage Lender License. Our office is at 121 NJ-36, Suite 230, West Long Branch, in Monmouth County; we do not have an office in Union County, and we lend across New Jersey.
The homes
- Detached houses: about half of homes, an estimated 49.7 percent
- Two-family homes: an estimated 16.7 percent are in buildings of two units
- With a mortgage: an estimated 67.4 percent of about 116,600 owner-occupied homes, about 78,600, carry one
Source: US Census Bureau, American Community Survey 5-year estimates, 2020 to 2024. Estimates, not counts.
Older homes
What the lender looks at on an older house
On a house built decades ago, ask early how its age and condition affect the loan. The appraisal values the home, and with some programs it also checks the home against a set of standards.
If the inspection or the appraisal turns up work the house needs, that need not end the purchase: a renovation loan can include the cost of the work, as the next section explains.
By program
- FHA: the home must meet HUD’s safety and soundness standards, which the FHA appraiser checks, and repairs may be required before closing
- VA: the appraisal lists any repairs needed to meet VA’s property standards; it is not a home inspection, so VA recommends one
- Every loan: the current property tax bill and an insurance quote, because both are part of the monthly payment
Renovation loans
One loan for the house and the work
A renovation loan pays for a home and the work it needs 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.
FHA 203(k) Standard
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 loansConventional renovation loans
The cost of the work can be a large share of the finished value. For a main home and, in some cases, a one-unit second home or a rental property.
Renovation loansThe money for the work is held by the lender and paid to your contractor in stages, as an inspector confirms each stage. Renovation loans cannot be used to tear a house down and rebuild it, and they do not pay out cash to you.
Homeowners
Already own? Three ways to pay for the work
Refinance and renovate. A renovation loan can refinance the home you own and pay for the work with one new mortgage, sized on the value when the work is finished.
Keep your mortgage. A home equity line of credit fits work paid in stages: you draw on it as the work is done, and your first mortgage stays exactly as it is. A home equity loan, one lump sum with a set payment, fits a project with a fixed price. See HELOCs and home equity loans in New Jersey.
Take cash out. A cash-out refinance replaces your mortgage with a larger one, and the cash can be used for home improvements, among other things.
Questions
Questions from Union County buyers and homeowners
Do you lend in Union County?
Yes. Fidelity Residential is a dba of PFN Lending Group, Inc. (NMLS #103098), which holds a New Jersey Residential Mortgage Lender License, and we lend across New Jersey. You can check the licence on NMLS Consumer Access (opens in a new tab).
Do you have an office in Union County?
No. Our office is at 121 NJ-36, Suite 230, West Long Branch, NJ 07764, in Monmouth County. Call 732-686-9999 to talk with a licensed loan officer.
Will an older house need repairs before closing?
It can. With an FHA loan, the home must meet HUD’s safety and soundness standards, and repairs may be required before closing. If the house needs work, a renovation loan can pay for it within the same loan.
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.
Can I take cash out with a renovation loan?
No. The money is for the home and the work. If you want cash from your home’s value, see cash-out refinances.
How long does a renovation loan take?
It depends on the project, the contractor and the inspections. Renovation loans have more steps than a standard purchase, so start early and share your contract dates with your loan officer.
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.