The Fannie Mae HomeStyle Renovation loan in Texas is a great loan option when you find a home that you love but it needs a little updating. This updating could be just cosmetic such as adding hardwood floors or more structural such as foundation repair.
One of the recent changes that has been made to this program is that a Consultant is now required to be on board from the beginning, much like the FHA 203k loan has always required when doing the full version. The role of the Consultant is to do the upfront feasibility study and then to stay on board for the duration of the project and facilitate the inspections and draws requests required.
The one exception to this is if you are doing under $15,000 worth of work or performing a singular upgrade. In this instance, under the Fannie Mae HomeStyle loan, you will not need a Consultant. This is much like the FHA 203k streamline loan. A great example of this is the installation of a pool.
One point to keep in mind is that the elimination of the Consultant for reduced repair amounts is lender specific and is essentially an overlay. This would be something just to consider when looking at various lenders who offer this program.
Personally, I see this as a nice feature. Think of it as having your own mini project manager working in the field with you and your general contractor. Just a little more insurance that things will go as smoothly as possible!
So what is a feasibility study? It is an evaluation and analysis of the potential of the proposed project. It is basically a write up by an independent, 3rd party who is reviewing the condition of your home and the bid for the work to be done. This study will detail and outline the scope of the work. It will also include any recommendations by the consultant for required work that will need to be done to have the final project be as successful as possible. Again this is just a win/win for you as a home owner to have this study done to insure the success of your project.
Click on each link to check out an example of the Consultant’s Report and a Bid from a General Contractor
The HomeStyle renovation loan allows a buyer to purchase a property in as is condition and roll in any desired or required repairs with only a 5% down payment! Want to avoid mortgage insurance? This is an option with a down payment of 20%.
Let’s talk about some of the nuts and bolts of the loan:
- Minimum credit score: 680
- Minimum down payment: 5%
- Maximum loan amount: $417,000
Eligible Properties:
- Single Family Residences
- Multi Family Residences – up to 4 units
- Condos
Eligible Repairs:
- Structural foundation and or a roof
- Upgrade and renovate kitchen and or bathroom
- Granite counter tops, hard wood floors
- Luxury items and outdoor amenities…just to name a few…
Call me today and let’s talk about how this loan can help with your new home purchase or existing home! Repairs don’t scare me and they shouldn’t scare you either – especially when speaking of the Fannie Mae HomeStyle Renovation Loan in Texas