Fannie Mae HomeStyle Loan!

The Fannie Mae HomeStyle Renovation loan is a single-close loan that allows borrowers to purchase a home or refinance their current home and make renovations or repairs. This loan combines the cost of the home and the cost of the renovations into one mortgage, eliminating the need for a separate construction loan.

Eligible renovations can include items such as:

• Remodeling bathrooms or a kitchen, including new built-in appliances  

• Replacing a roof, gutters, and downspouts  

• Adding a family room, bedrooms, or bathrooms  

• Replacing flooring, tiling, or carpeting  

• Completing a basement or attic conversion or adding a second story  

• Expanding or building a garage or carport  

• Renovating a deteriorating property, such as repairing a chimney, termite damage, or structural problems  

• Upgrading plumbing, heating, air conditioning, or electrical wiring  

• Eliminating health and safety hazards, such as removing lead-based paint  

• Making the home accessible to the disabled  

• Installing a well or a septic system  

• Adding a porch, deck, or patio  

• Adding or repairing siding or repainting 

• Installing energy efficient windows or doors  

• Repairing an existing swimming pool  

For a purchase, home buyers who will live in the home after completion can finance: up to 97% of the home's "as-completed" value if they meet income limits or are a first time home buyer (or up to 95% of the “as-completed” value if neither apply), on a single family home ; up to and up to 95% of the “as-completed” value of a 2-4 unit if owner-occupied.

Investors can use the program on single unit homes only, and borrow up to 85% of the “as-completed” value if purchasing or 75% of the “as-completed” value if refinancing. Both homeowners and investors can choose from a variety of loan terms and fixed or adjustable interest rates.

One of the benefits of the HomeStyle Renovation loan is that it allows borrowers to make necessary repairs or updates to a home without having to come up with the cash to pay for them upfront. It also allows borrowers to purchase a home that may need repairs and make those repairs after closing, which can be a more affordable option than buying a move-in ready home.

Overall, the Fannie Mae HomeStyle Renovation loan is a great option for those looking to purchase a home that needs repairs or updates, or for homeowners looking to make renovations to their current home. It allows borrowers to finance both the cost of the home and the cost of the renovations into one mortgage, making the process often more convenient and affordable than a second mortgage/home equity line. It can also help home owners tap into future equity created by the improvements versus using the current equity as the property stand now.

If you want to learn more about renovation financing, our expert loan officers would be happy to assist!