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Renovation Loan Program

Fannie Mae HomeStyle Renovation

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Fannie Mae HomeStyle Renovation General Guidelines

  • This loan allows a customer to finance the purchase price or the existing balance and the cost of improvements into one loan amount.
  • The loan amount is determined by using the after-improved value of the property.
  • Can lend up to 95% – 97% of after improved value up to Conforming loan limits
  • One-time close fully amortized transaction.
Mortgage Loan

Benefits of a Fannie Mae HomeStyle Renovation

  • All Renovations are completed after closing by the 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% – 97% 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

Fannie Mae HomeStyle Renovation Additional Info

  • 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

More About Fannie Mae HomeStyle Renovation

  • Completed work & Inspections required prior to draw payments to Contractor (Maximum 5 Draws)
  • Maximum Total allowed Renovation Costs is limited to 75% 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