The HomeStyle Mortgage

Central Coast Lending offers an affordable mortgage solution for potential owners to purchase and renovate a new home, or for existing owners to refinance and upgrade their current property. The HomeStyle Mortgage allows homeowners to include financing for a whole swath of home improvement(s) in with their mortgage, including kitchen upgrades, bedroom and bathroom additions, structural repairs, energy efficiency changes, and cosmetic alterations.

New Home Purchase and Renovations

The California real state market can be very difficult for buyers, and our home County of San Luis Obispo is no different.

The median price of single-family homes sold in SLO County through October 2014 was $480,000. Bargains have been few and far between.

In 2011, 39% of sold single-family properties were “distressed” (foreclosure or short sale), but today that portion is just 6%. Through October of 2014, foreclosure properties were priced 35% lower than “normal” properties on average, but such deals are increasingly difficult to find.

The HomeStyle Mortgage program will allow buyers to expand their criteria to include more properties, because they can fold desired renovations into a single, affordable loan.

Refinance and “Move Up” in Your Own House

The refinance-and-renovate solution offers an olive branch to homeowners in San Luis Obispo County’s competitive real estate market. Over the past 36 months, the median home price has risen nearly 30%. As families grow and circumstances change, homeowners might want or need something different from their property. Rather than attempt to make the difficult “move up” to something new, the solution to your future might be right beneath your feet.

The HomeStyle Mortgage offers a conventional solution to the cash-flow problem. Owners can borrow on up to 50% of the as-completed value of the home. An estimated post-improvement $400,000 home, for example, would allow borrowers to earmark up to $200,000 for home improvements. The renovation loan will cover labor and materials, soft costs (architect fees, permits, licenses), and up to six months of mortgage payments should the owner vacate the property during renovation.

The HomeStyle Mortgage

Relative to other renovation financing options, the HomeStyle Mortgage typically offers more flexibility affordability, and ease-of-use (rather than, say, adding a second mortgage or paying a premium for the FHA 203k loan).

Special Features:

  • Finance multiple home improvement projects, and cover fees for architect, permits, and licenses.
  • More affordable than other home improvement loans (such as FHA 203k)
  • “Luxury” projects allowed (swimming pools, landscaping, etc). This isn’t the case with FHA 203k.
  • Primary, secondary, and investment homes allowed, including up to 4 units.


  • 15-, 30-year fixed term
  • Adjustable rate available
  • Primary, secondary, investment homes allowed
  • 1 to 4 units allowed
  • Down payment as low as 5%
  • No mortgage insurance when loan-to-value is under 80%
  • Borrow up to 50% of the estimated post-improvement home value ($400,000 post-improvement value would offer $200,000 in financing).
  • Borrowers have 30 days to begin and 180 days to complete.

As with any loan program, there are a more nuanced details, possibilities  and qualification specifications. Give us a call at 805.543.LOAN for a free, honest, confidential assessment of the possibilities!

Step 1. Get Pre-Approved.

How Does Pre-Approval Work?

Getting pre-approved is as easy as 1-2-3!

1. Create an Account

Creating an account is fast, easy, secure and FREE! Your account enables you to easily modify your loan application and view the status of your loan anytime day or night.

2. Submit Information

When you register for a Loan Center account, you can submit a loan application online and the sensitive information that you provide will be transmitted securely.

3. Get Pre-Approved

Kick your feet up while we crunch the numbers. Pre-approval can be done very quickly if you provide a complete and accurate loan application and supporting documentation.

You have questions? We have answers.
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