Many of the homeowners we speak to at MortgageDepot need help financing a renovation project. We hear stories about families outgrowing a home and needing to add more space, or our borrowers might have purchased an older home that is in dire need of repairs and updating. No matter what the reason might be, the HomeStyle Refinance Renovation Mortgage program could be the answer to a homeowner’s financing by allowing them to refinance an existing mortgage to obtain money for repairs and renovations.
Overview of the HomeStyle Renovation Mortgage refinancing program
- One-time close construction loan that finances the improvements
- Permitted to be used for “luxury” improvements ex. swimming pools
- 6 months given to complete the renovations
- Loan-To-Value is based on the home’s projected future value
- Vacation homes and investment properties are eligible
A HomeStyle Renovation Mortgage offers borrowers the opportunity to finance much-needed repairs, renovations, remodeling or energy-saving improvements. Instead of using a costly second mortgage or home equity loan to pay for repairs and improvements, our mortgage specialists help borrowers to save money by refinancing an existing first mortgage.
The Fannie Mae program offers homeowners attractive loan-to-value ratios and affordable interest rates on 15-year and 30-year mortgages. Borrowers refinancing under this program may obtain renovation funds equal to 75 percent of the appraised value of the property determined after completion of the work.
Loans through this Fannie Mae program may be used for renovations and repairs to the following types of housing:
- One- to four-unit site-built homes
- Modular homes
- Warrantable planned unit developments
- Warrantable condominiums
Our mortgage loan originators work with borrowers to determine if a home is eligible for refinancing through the HomeStyle Renovation Mortgage program. If it is not, we have other refinance options from one or more of the many lenders with whom we work.
The minimum mortgage amount under the program is $50,000 with a loan-to-value ratio as high was 97 percent. Fees for architects, engineers and building permits associated with the project are eligible for inclusion in the total amount of the loan. Any funds not used in the renovation are applied to the reduction of the principal balance of the loan.
MortgageDepot offers financing solutions
No matter what type of refinancing help borrowers might need, we have the solution at MortgageDepot. Our mortgage professionals work with borrowers to find the best programs offering the most favorable terms to refinance their existing mortgages. Find out more about the Fannie Mae HomeStyle Renovation Mortgage refinance program and the other financing options we offer by calling us at (800) 220-LOAN to speak to one of our mortgage loan originators.