The final loan amount can be as high as $417,000.00 and luxury items such as a pool or spa may be installed.
Buying a fixer upper home can be challenging. Finding the right financing can be downright frustrating. HomeStyle renovation loan contains one application, one closing, and one set of fees. In the end all of the costs may be financed (up to 95% loan to value). 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, home foundation repair, etc.
HOME STYLE – GOVERNMENT INSURED CAN BE USED FOR:
- Bathrooms and kitchen remodeling (including built-in appliances)
- Replacing a roof, gutters, and downspouts
- Adding a second story, a family room, another bath, etc.
- Completing a basement or attic
- Upgrading plumbing, heating, air conditioning or electrical service
- Installing new siding, energy efficient windows and doors
- AND MUCH MORE!
This loan allows for the repair of foundation and roof too!
Benefits of the Home style Loan
- Can be used for foundation or structural repairs
- Can be used to rebuild disaster affected areas
- Can be used to repair a swimming pool
- No dollar cap on repair amount
- Can borrow up to 50% of the future appraised value
- Can go up to a 45% debt to income ratio
- Closing costs can be rolled into the loan
- Can be used for new purchase or refinance
- Can buy a foreclosure or existing home
- Available for single family or modular homes
- Luxury items allowed such as swimming pools, outdoor kitchen
Requirements the Home style Loan
- 660+ credit score required
- No bankruptcy in the last four years
- No foreclosure in the last five years
- Can be for primary, secondary, investment properties
- Mobile homes and double wides are not allowed
- Maximum loan amount $417k
With as little as a 5% down payment you can add your taste & style to a house to make it your home with remodeling projects like a new kitchen, bathroom, room addition or energy efficient upgrades.
HomeStyle Renovation allows you to buy a home and fix it up, or refinance and remodel your current home.
- Purchase or refinance & remodel
- 5% minimum down payment for primary, single-family residences (10% for second homes)
- You can use gift funds for down payment & closing costs for owner occupied, primary residences after you contribute a minimum 3% down payment
- 3% seller contribution allowed
- Cosmetic and structural renovations allowed
- Allowable improvements can include landscaping, appliances, swimming pools and more
Lenders must receive special approval to deliver this program to Fannie Mae.
The lender must meet all Fannie Mae guidelines.
Renovation work must be completed no later than 12 months from the date the mortgage loan is closed.
All renovation work must be performed by a licensed contractor.