Like the FHA 203K renovation loans, the Fannie Mae HomeStyle® Renovation Mortgage lets borrowers combine the cost of the home with the costs for renovation or remodeling all in one loan. However, unlike the FHA 203K there is no mortgage insurance on the HomeStyle loan if you put 20% down & HomeStyle allows Investors and 2nd home purchases.
The loan can be used to purchase or refinance and renovate most residential properties. **
- Available for owner-occupied one- to four-unit properties, one-unit investment properties and one-unit second homes.
- Finance up to 95% of the purchase price and renovation costs for one-unit primary residences. **
- Finance up to 90% of the purchase price and renovation costs for conforming one-unit second homes. **
- Finance up to 80% of the purchase price and renovation costs for two-unit primary residences and conforming one-unit investment properties. **
- Finance up to 75% of the purchase price and renovation costs for three- to four-unit primary residences. **
- The funds can be used for any repairs or renovations that are permanently affixed and add value to the property.
- Soft costs (architectural and engineering services, permit fees, etc.) may be financed.
- Up to 6 months payments can be financed if the house is not habitable
- Luxury items are allowed, such as building an in-ground swimming pool, which cannot be done under the Federal Housing Administration (FHA) 203(k).
The cost of renovation is limited to 50% of the “as-completed” appraised value (including allowable costs). That is, the amount based on the home’s value after renovations have been completed.
i.e. As-Completed Value = $400,000 = $200,000 Max Renovation Budget
Eligible borrowers for the HomeStyle Renovation program include individual homebuyers and investors.
HomeStyle® is a registered trademark of Fannie Mae.
Call me today to discuss your Renovation Loan Options at 916-235-3989 – I have been helping clients with mortgage loan needs since 1999 and I specialize in FHA 203K & HomeStyle Renovation Loans in California! (Read More about Sheri here)