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
There are many reasons why the HomeStyle Renovation Loan can be a great loan to either remodel the home you already own or add on to that home you’re looking to purchase that doesn’t quite have everything you need. Either way, it’s the perfect loan to allow you to add your personal stamp and make the statement you’ve always wanted to make with where you live.