Refresh to Feel New in your Existing Home! Using the HomeStyle Renovation Loan

HomeStyle Renovation Refresh

Homeowners in La Porte, TX gave a home originally built in 1940 new life. This was all made possible using the Conventional HomeStyle Renovation Loan. This family wanted to stay authentic to the age of the home and keep the remodel true to that era.  Stove is from the 1950’s and still works like new. With it being very popular today to have the older looking appliances the firdge was a great find that looks like it is dated from the 1950's but actually is is 100% new and purchased the year before the renovation even started.. 

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The budget for this Conventional HomeStyle project was near $175,00.00.  The remodel was all about creating a vision for a fully custom home.

Amount to Refinance $241,623.93

Base Bid ​$151,979.00

Contingency 10%

Inspections 5

After improved value of ​$470,000.00

 This was an interesting project because it had already started before the renovation loan.These buyers started using there own funds but then realized the HomeStyle Renovation Loan could be used to refinance and renovate and that is where we stepped in.   As long as the work came to a halt during the loan process the HomeStyle Renovation loan can be used to complete the renovations. Everything from a stylish kitchen to a beautiful backdoor and window design leading into the backyard. We were able to add a privacy fence in the backyard.  Doors, paint, flooring and even moving walls to create a spacious layout. 

Don't forget to check out the before and after pictures below but first check out the Loan -to-Value guidelines for Fannie Mae HomeStyle Renovation Loans:

• 95% Loan-to-Value on 1 unit properties
• 90% Loan-to-Value on second homes
• 80% Loan-to-Value on second homes

Front of house

Kitchen before

After patio exit

After kitchen

Here are a list of contractor tips to keep in mind for your HomeStyle Renovation Loan:

• You may select 1 General Contractor and 1 Specialty contractor (foundation, roof, pool)
• What are your material allowances for material items like flooring, cabinets or appliances? Ask your contractor for specific material choices or allowances to decide later
• Ask your contractor to itemize the bid and break each line item into labor and material
• Your contractor must carry a minimum of $1 million in general liability insurance