HOMESTYLE RENOVATION LOAN

“If You Dream It, We Finance It”

Fannie Mae’s HomeStyle Renovation Loan is a conventional loan with the ability to allow you as the homeowner or buyer to make the necessary repairs, upgrades or remodel to any residential home – All consolidated into one convenient loan. This loan was rolled out to compete with FHA’s 203k repair loan, yet with less limitation and restrictions. With the HomeStyle Renovation Loan you can repair or remodel anything you need to as long as it is attached to the existing home. You can even include adding in a pool and/or a fence. With FHA 203k you simply cannot.

HERE ARE JUST SOME EXAMPLES OF WHAT YOU CAN DO WITH THE FANNIE MAE HOMESTYLE RENOVATION LOAN:

Available for Purchase or Refinance
Down Payments as low as 5% down for Primary Residence; Refinancing up to 95% Loan to Value
Loan Limits up to $424,100 depending on the county in Florida
Examples on how to use this loan: Repair a roof, add enclosed sq ft, install/remodel pools, enhance landscaping, remodel bathrooms or kitchen, repair or remodel any part or all of the home, etc.
Repair Costs up to 50% of After Repaired Value (ARV); i.e. If ARV = $200k, then remodel costs can = up to $100k
Depending on size of remodeling project, program will allow up to 6 months to complete with draw schedules to be determined
Will allow to roll in extra money to make mortgage payments while remodel is taking place
Available for all types of residential property types except manufactured homes
Can be used on Primary Residence, Second Homes and even Investment Properties (LTV restrictions still apply)
Will NOT work for fix and flip investment properties

Pools

Sometimes the only renovation you need here in Florida is a pool installation. The Fannie Mae HomeStyle Renovation Loan allows two ways you can finance a pool.

New Pool Installation – If a new pool is what you want, then we can do it. This can be for a home you already own, or a home that you are about to purchase. It’s extremely flexible.
Existing Pool Renovation – For existing pools you can use this loan to remodel your pool with upgraded detail and maybe even add in that outdoor kitchen and living space you’ve always dreamed of. The possibilities are endless!
Compared to other pool loans that only offer you a short term loan such as 36 – 84 months financing with much higher rates and monthly payments, our loans can be financed on a 15, 20 or 30 year financing terms with conforming and competitive rates.

Key Benefits

Sometimes the term “Renovation” scares people into thinking long, grueling project. However, consider some of the Key Benefits to a Renovation Loan:

No Renovation Cost Out of Pocket – Let’s face it, money is still cheap these days. And other than your down payment, why not roll in the cost of the renovation and finance it as one loan and keep your hard earned money in hand and possibly leverage it somewhere else.
Enhanced Energy Savings – The more items you update such as roof, windows, shutters, structure, insulation, the more your cooling and heating bills stay low. It’s always great to remodel a home to look beautiful, but the real savings will be enjoyed when you starting receiving your utility bills each month. Not to mention a more affordable homeowner’s insurance policy because of an updated home.
Remove the Competition – We all know how stressful a home search can be. Everyone ideally looks for that perfect move in ready home. The obstacle that is quickly realized is that once you do find that perfect home, there are six other offers and it becomes extremely competitive. You go through this 4-5 times and you waste what seems like 6 month with nothing to show and you’re now discouraged. Why not remove yourself from the competition from the beginning? Find the area you like with the best location, schools and community and pick the worst house in the neighborhood. Then make it your dream home with the renovation home loan. Ask yourself which is worse – 1. Spending 4-5 months home shopping with nothing to show for in the end? Or 2. Starting out with home renovation loan from the beginning and spending 2-3 months with renovation and then move in?
Higher Loan to Value – If want to renovate the home you already live in, have equity and would like to take cash out, then you would be limited to 80% Loan to Value. However, with the renovation loan, they treat it like a rate/term loan and you can go all the way up to 95% LTV of the future perceived value! That’s a huge advantage! If it’s for a purchase the same LTV’s apply. You can add in all the renovation costs into the loan and still only put down a minimum of 5% for primary, 10% for second homes and 15-20% for investment properties.
Instant Equity – More times than not you will walk into instant equity renovating an existing home than compared to a new home construction. The reason is you buying an existing home at a lower price already, completely remodeling it to make it look brand new and appraised value usually comes in 5-15% higher than overall costs. So it’s a no-brainer!

Eligibility

Coming soon.

Myth vs. Truth