What is a HomeStyle Renovation Loan?
This newest product is the Fannie Mae HomeStyle Renovation Loan and it can be used on any property, not just ones owned by Fannie as the name might suggest.
With this product borrowers may finance up to 50% of the after improved value. The repairs/upgrades that can be done are really anything that is permanent to the property and that adds value. Some examples of those items would be remodeling a kitchen or bathroom, installing hardwood floors, granite counter tops etc. Other projects that may be tackled include replacing pool decking, adding landscaping, and this is just the tip of the iceberg. Very few project are not allowed as long as they will add value and become a permanent fixture to the property.
So many renovation options becoming available …how do you keep them straight? Well here is this program in a nutshell: This particular program is great for going up to a $417,000 loan amount, great for purchasing second homes and investment properties that need repairs. It’s also great for all Condo sellers/buyers. The best part is that there is no need to worry about if the condo is FHA approved …this is a Conventional product and condo renovations are allowed! The best part is the down payment is only 5% for primary residence and second homes! Investors will only need a down payment of 10%.
Market your listings “as is” and let the buyer customize the home to their particular liking with one of our many renovation loans! It’s also great for a seller not willing or unable to make any required repairs. With apprasial requirements being a bit more strict and underwriting guidelines tightening it’s nice to know that when lender required reparis are required there is an option for your buyer or seller.
Repairs don’t scare me and they shouldn’t scare you either!! Use the HomeStyle Renovation loan to benefit your buyer or your seller!