Finding a hidden gem when shopping for a home usually comes with the added cost of repairs and renovations before it becomes a home to a family or an income-producing property for an investor. Financing the purchase can be a challenge with traditional mortgages, but MortgageDepot has the solution with the Fannie Mae HomeStyle Renovation loan.
What makes a HomeStyle Renovation mortgage different?
A HomeStyle Renovation mortgage lets borrowers finance the cost of remodeling and repairing a home. Traditional mortgages rely upon an appraisal of the property in its current condition to determine its value. Underwriting guidelines of the HomeStyle Renovation program let appraisers include the repairs in order to project what the value of the property will be upon completion of them.
Highlights of HomeStyle Renovation mortgages
This loan program provides tremendous flexibility for borrowers with options that include the following:
- Mortgage terms of 15 and 30 years.
- Financing for a primary residence, second home or investment property.
- Available for properties containing one to four units.
- Subject to county loan limits with conforming- and high-balance mortgages allowed.
- Options for low down payments available on loans used for acquisition and repairs.
- Refinancing options incorporating payoff, repairs, closing costs and prepaids are available with an option for a low down payment provided there is sufficient equity.
The flexibility of the program makes it available to more borrowers and for different types of projects than most other types of financing.
A mortgage program offering solutions
A HomeStyle Renovation mortgage offers solutions to common challenges faced by borrowers, including:
- Purchasing a home that needs repairs.
- Purchasing a winterized, REO or bank-owned property in as-is condition.
- Refinancing or buying a home in need of a cosmetic overhaul.
- Refinancing a home with a loan-to-value ratio that exceeds the cash back.
- Purchasing or refinancing a home with a swimming pool or accessory-dwelling unit.
- Remodeling a home using its equity instead of credit cards.
Learn more about our HomeStyle Renovation mortgage program by visiting us at MortgageDepot.com.
Contact one of our loan consultants to learn more about this program.