HomeStyle Renovation Loan: Great for the Upcoming Summer Months
Summer is just around the corner so now is the time to start thinking about ways to keep cool. One great way to do this is to add or repair your existing pool. How can this be accomplished in a very cost effective way? The answer, use the Fannie Mae HomeStyle Renovation loan. This is a great loan for a current homeowner looking to do some luxury backyard upgrades or maybe for your new home that you are considering purchasing.
There is no better time to remodel than before you actually move in! For those of you purchasing a new home now would be the time to fully customize the home to your liking. Maybe the home has the perfect back yard but has required foundation and roof repairs. Not to worry, these can all be fixed using the HomeStyle loan too!
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 needs 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.
Call me today and let’s discuss the many renovation loans we have to offer.