FANNIE MAE HOMESTYLE

The Renovation Mortgage Process Revealed
  • This loan allows a customer to finance the purchase price or the existing balance and the cost of improvements into onr loan amount.
  • Loan amount is determined by using the after improved value of the property.
  • Can lend up to 95% of after improved value up to Conforming loan limits
  • One-time close fully amortized transaction.

  • All Renovations are completed after closing by buyer/homeowner selected Contractor.
  • Renovation funds are held in a Fully Funded Interest Bearing Escrow Account and disbursed as the work is completed.
  • 1-4 units properties allowed
  • Owner Occupied 1-Unit Up to 95% LTV
  • 3-4 unit – Owner Occupied Up to 75% LTV
  • 2nd Homes 1-Unit Up to 90% LTV
  • Investor 1-Unit 75% to 85% LTV

  • Any repairs borrowers choose are allowed, excluding any outbuildings (minimum required repairs at lender discretion if required)
  • Luxury Items, including hot tubs and pools are allowed
  • Any required health and safety issues that would be identified by an appraiser would be required
  • Feasibility Inspection required from 3rd party Feasibility inspection company depending on lender & renovation budget/repairs

  • Completed work & Inspections required prior to draw payments to Contractor (Maximum 5 Draws)
  • Maximum Total allowed Renovation Costs is limited to 50% of after improved value (includes contingency, inspections, & fees)
  • No property age restrictions but property typically must be considered substantially complete (lender discretion)
  • Minimum 10% contingency typically required (lender discretion)
  • Up to 6 months payments may be financed in the loan

General Program Guidelines

FHA Limited 203k

  • Both Purchase & Refinance Allowed
  • Refinances require 2 appraisals (As Is & After Improved Value)

FHA Standard 203k

  • Both Purchase & Refinance Allowed
  • Refinances require 2 appraisals (As Is & After Improved Value)

Fannie Mae HomeStyle

  • Can lend up to 95% of after improved value up to Conforming loan limits
  • 1-4 units properties allowed

THE VA RENOVATION LOAN

  • Newest Renovation Loan Program in the Market
  • Purchase & Refinance allowed

JUMBO RENOVATION

  • Available programs in this category would be specific to properties that require loan amounts over $424,100.00 as of 2017

Our Motto is The Renovation Mortgage Process Revealed

GENERAL PROGRAM GUIDELINES

3% Down Payment HomeReady Option

Rumors are that this product option including Renovation via the HomeStyle Renovation Program may be available now. The 3% down product has been available for a few years now on Standard Conventional Non Renovation loan options via the HomeReady and/or Home Possible Programs sponsored by Fannie Mae and Freddie Mac respectively. (consult your lender to see if they are offering this product or just the 5% Down Program)

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