Renovation Mortgage Program
The Fannie Mae (FNMA) Homestyle Renovation Mortgage is a Conventional Rehab Loan product. This loan allows borrowers to purchase a home in need of repairs, to refinance their current home, and include the necessary funds for renovation in the balance of the new loan. The loan amount is based on the after repair value of the home and not the value before repairs. The flexibility of the Fannie Mae HomeStyle Renovation Mortgage allows it to be used in a wide variety of scenarios. If a homeowner has an eye on a fixer upper and wants to turn it into a dream home, then it is highly likely the HomeStyle Renovation loan can help make it happen!
– Construction consultant required for structural repairs or repairs over $35,000
– 620 minimum qualifying credit score
– Repairs or improvements must be permanently affixed to the real property and add value to the property
– 15 year and 30 year Fixed
– No minimum dollar amount required for repairs
When is the FNMA HomeStyle Renovation Loan useful?
This program could be the ideal solution for investors looking to make repairs and plan to rent out the property. Or sell it after the repairs are completed! Under this program, investors may also purchase a single unit property and include funding for renovations in the same loan.
The HomeStyle Renovation loan product can also benefit borrowers who wish to refinance an existing mortgage and take on a significant home improvement project. This may cost less and serve as an alternative to a home equity line with an adjustable interest rate or a second mortgage!
What separates the Homestyle Renovation loan from most renovation loans is the ability to add luxury improvements such as…
– Swimming pools
– Hot tubs
– Outdoor kitchens
– Or even a Tennis Court
Buying a Home with a FNMA HomeStyle Renovation Loan
In addition to financing for repairs and improvements, the HomeStyle Renovation Mortgage can create home buying opportunities for investors and homeowners when they are finding difficulty looking for a property that has everything they are looking for. Maybe the home is too small, the floor plan is unappealing, or there is a kitchen in need of a more modern look. Whether you are an investor or looking for a primary home, with a HomeStyle Renovation the stress of looking for an eye-catching home is practically obsolete, all you need is a vision!
Contact me today via email or phone call and I’d be happy to assist you with your home buying and rehab goals; as well as answer any questions you may have. Here at Northeast Financial we are with you every step of the way!