Easy Money For Backyard Renovations in Texas
The hot Texas summer is coming so now might be a good time to consider a backyard renovation. Maybe add a pool or an outdoor kitchen? Or maybe you are just in need of some landscaping. Regardless of your need the Fannie Mae HomeStyle Renovation loan is going to be the answer. By saying this of course I’m referring to a refinance of your current mortgage but if you are simply in the market for a new home the HomeStyle Renovation loan can help as well.
Currently, there are a number of foreclosure listings in Texas which need some, if not a lot, of work before they are move in ready. Contrary to what you might think these are not bad properties, they just need some updating and/or repairs. In fact, in the end you might find yourself in a great equity position.
This is a conventional loan which means the loan amount can go up to $417,000.00 and has a low down payment of 5%. Best of all unlike the FHA Rehab loans, luxury items ARE ALLOWED with the HomeStyle loan. This means that not only landscaping and new decking are allowed but with this loan you may add a pool, renovate an existing pool add an outdoor kitchen and even a sauna!
If you are an investor who is considering purchasing a property that is currently owned by Fannie Mae that is in need of a little work – the Fannie Mae HomeStyle loan is your answer as well!
At closing, all funds for renovation will be escrowed in an interest-bearing account. After all renovation work is complete, any remaining funds in the escrow account will be used to pay down the principal balance of the mortgage.
Fannie Mae HomeStyle Renovation Mortgage Highlights:
- Up to 95% LTV for owner occupied / 75% LTV for investment
- Gift funds allowed
- Renovation funds escrowed in an interest bearing account
- Multi-dwelling units and Condos are allowed (may be subject to additional requirements)
- Soft costs (architectural services, engineering, permit fees, etc.) may be financed
- Loans are underwritten to FNMA guidelines
- Credit score minimums range based on LTV requirements and income documentation requirements
- Pool and luxury item installation or repair allowed
- Mortgage insurance requirements are based on the LTV calculated using the after-improved value
- The HomeStyle Program is available for refinancing options as well as purchase financing
With the HomeStyle Renovation Mortgage – you can basically do any kind of repairs as long as the appraised value can support the repairs or improvements are common for the area. The repairs must be completed within 120 days and cannot be more than 50% of the final appraised value.
Is the Fannie Mae HomeStyle Renovation Mortgage the best loan for investors who want to purchase a property in need of a few repairs? I can’t think of a better one. Especially for those in need of some easy money for back yard renovations.
Call me today and let’s discuss the many renovation loans we have to offer.