HomeStyle Renovation Program
Financing the purchase of a home when it is in need of extensive repairs can leave buyers feeling lost and without a solution. At MortgageDepot, our team of professional mortgage loan originators has the solution in a Homestyle Renovation loan backed by FannieMae.
One loan provides money to buy and renovate
The Homestyle Renovation program offers borrowers the opportunity to avoid unnecessary closing costs usually associated going to closing on a loan to acquire the property and a second closing on a home equity loan to pay for renovations. FannieMae combines the needed financing into a single loan that allows borrowers to finance renovations valued at up to 50 percent of the post-renovation appraised value.
Here’s how it works
When borrowers find a home, our mortgage brokers find a lender offering Homestyle Renovation financing. The lender is shown the improvements the borrowers plan to make, so the appraisal is based on the projected value of the home following completion of the repairs. Borrowers purchasing homes that cannot be occupied during the renovation process may incorporate up to six months of mortgage payments in their financing.
Features of a Homestyle Renovation loan
The following are some of the unique features of this loan program from FannieMae:
- Save money with a single closing
- Loan-to-value based on post-improvement valuation
- Borrowers may finance any permanent improvement adding value to the property, including swimming pools
- Up to 3 percent in seller concessions permitted
- Possible to finance up six months of mortgage payments
- One- to four-unit primary residences or one-unit investment or second homes are eligible
Borrowers have up to six months after closing on the loan to complete the renovations.
Contact MortgageDepot today
Speak to one of our professional mortgage loan originators at MortgageDepot today for more information about this and other mortgage programs.