Details On The Fannie Mae HomeStyle® Renovation Mortgage Loan Program
The Fannie Mae HomeStyle® Renovation Mortgage Loan is our standard renovation program for Conventional Loans.
With this program you can perform all of the same renovation as with the FHA 203k but without all of the limitations since after all this loan does follow conventional guidelines.
The final loan amount can be as high as $548,250.00* (depending on where you live ) and luxury items such as a pool or spa may be installed.
*High-cost areas can get conforming loan limits up to $822,375.
This Fannie Mae HomeStyle® Renovation Mortgage Loan contains one application, one closing, and one set of fees. You can put as little as 5% down and first-time home buyers may qualify to put only 3% down. If you have 20% to put down then you will have the option to avoid mortgage insurance and opt out of escrows. Again, just another benefit of this being a Conventional loan!
You may start work on the home three calendar days after closing and funding. As your general contractor completes the work he/she may call for draws during the process. Funds will be released to the general contractor in accordance with the draw schedule agreed upon prior to closing.
Depending on the size of the project a Consultant could be required. If required, we will gladly help you locate one in your area. The Consultant will perform a feasibility study prior to the appraisal being done to ensure the scope of the work meets the program guidelines. He/She will also monitor the work for the duration of the completion time, which incidentally is 140 days.
This is also a great loan for current homeowners looking to remodel or upgrade their home. Some popular items have been landscaping, adding a pool or an outdoor living space, updating the AC/Heating units, etc.
Let's not forget about foundation issues in Texas. This loan allows for the repair of foundation and roof too!
With a refinance situation your first lien will be paid off, you will only have one closing, and you will eliminate the need for a Texas Cash-out loan.
Type of work for Fannie Mae HomeStyle® Renovation Mortgage Loan:
According to Fannie Mae: Homestyle® Renovation Mortgage
The Fannie Mae HomeStyle® Renovation mortgage loan provides a convenient and economical way for borrowers considering moderate home improvements to make repairs and renovations with a single-close first mortgage, rather than a second mortgage, home equity line of credit, or other, more costly methods of financing.
The Fannie Mae HomeStyle® Renovation Mortgage Loan is a single-close loan that enables borrowers to purchase a home that needs repairs, or refinance the mortgage on their existing home and include the necessary funds for renovation in the loan balance. The appraisal is based on the “as-completed” value of the home not the present value.
The Fannie Mae HomeStyle® Renovation Mortgage Loan permits borrowers to include financing for home improvements in a purchase or re-finance transaction of an existing home. HomeStyle Renovation provides a convenient way for borrowers to make renovations, repairs, or improvements totaling up to 75% of the as-completed appraised value of the property with a first mortgage, rather than a second mortgage, home equity line of credit, or other, more costly financing method. Eligible borrowers include individual home buyers, investors, nonprofit organizations, and local government agencies.
Description | Details |
|---|---|
Loan Purpose | Purchase or limited cash-out refinance. |
Loan Type/Term | 15- and 30-year FRMs and all eligible ARM products. |
Borrower Eligibility | One- to four-unit principal residences, one-unit second homes, or one-unit investor properties including units in condos, co-ops, and PUDs. Nomanufactured housing. Any type of renovation or repair is eligible, as long as it is permanently affixed to the property and adds value. Renovations should be completedwithin a twelve-month period from the date the mortgage loan is delivered. |
Property and Renovation Eligibility | Eligible borrowers include individual home buyers, investors, nonprofit organizations, or local government agencies. Nonprofit organizations must provide additional documentation so that lenders can assess the viability of the nonprofit to repay the particularmortgage. |
Additional details regarding contractors according to Fannie Mae.
For Borrowers that want to Do-It-Yourself option.
Borrowers can perform the renovation work themselves at the lender’s discretion (and where the state allows) provided that:
Programs and guidelines changes happen often and are in some cases lender specific and/or state specific. Always contact a qualified Fannie Mae HomeStyle® mortgage professional for the most up to date program and guideline information.
To find out more about the Fannie Mae HomeStyle® Renovation Mortgage Loan please call me today.
Photo Credit: Bill Shields Buyers Agent
For an FHA loan option similar to the Fannie Mae HomeStyle® please check out the FHA 203k rehab loan.
Handling renovation loans Nationwide. Locally serving Dallas/Fort Worth, McKinney, Allen and Frisco.
HomeStyle® is a trademark of Fannie Mae.