It’s not uncommon for homebuyers to feel helpless while trying to secure financing for a property that requires significant renovations. Homestyle Renovation Loans sponsored by Fannie Mae are the answer, and the expert mortgage loan originators at SteveKnowsLoans can get you one.
Purchase and improvement costs might be combined into a single loan.
Borrowers who participate in the Homestyle Renovation program can save money on closing costs by combining their mortgage and home equity loans into a single transaction. Using a single loan, Fannie Mae enables borrowers to fund renovations up to the value of the property once it has been improved by up to 50 percent.
This is how it operates:
Our mortgage loan officers search for a lender who is willing to provide home renovation financing when a borrower locates a suitable property. Lenders are given a detailed list of proposed renovations, and an estimate of the property’s value is calculated based on this figure. It is possible to finance up to six months worth of mortgage payments for homebuyers who will be unable to occupy the property during renovations.
Loan Characteristics for Interior Remodeling Projects
The following are some of the distinguishing characteristics of this Fannie Mae loan program:
- One-time closings are more cost-effective.
- Value-to-loan ratio calculated after all renovations have been made
- Swimming pools are only one example of the kind of permanent improvements that might be financed by borrowers.
- Sellers can provide discounts of up to 3 percent.
- Mortgage payments can be financed for up to six months.
- Homes with one to four units are not eligible, but those with one unit are, including investment and vacation properties.
After the loan closes, the borrowers have up to six months to finish the work.
For more details on this and our other mortgage programs for home improvements, please contact one of our skilled loan originators.
Here’s a case in point:
The Old Way
- The borrower is planning to spend $500,000 on a house.
- discovers an ideal residence, but it requires major renovations (a new kitchen and bathroom).
- The price tag for repairs is $80,000.
- The borrower concludes that a home in their price range of $425,000 is out of reach and resolves to use savings to finance the necessary renovations.
MODEL CHANGE!!
- A home purchase in the range of $500,000 is in the borrower’s plans.
- discovers an ideal residence, but it requires major renovations (a new kitchen and bathroom).
- Repairs will set you back $75,000.
- As your reliable mortgage consultant, we can help you take care of the acquisition and the improvements thanks to the FNMA HomeStyle Renovation Loan Program. We prefer this program to the 203k because of the lower funding costs and the flexibility to include high-end additions like a swimming pool, heated sidewalks, and better materials.
- The borrower maintains a healthy savings account and may even use the funds to acquire a more desirable dwelling.
For additional information contact us.
Call Steven Jackson at 813-616-9411 now!
