HomeStyle Renovation Loan

I want to drive home the point our Fannie Mae HomeStyle renovation loan is a smart way to renovate your primary residence, second vacation home, or investment property.  Let’s say you purchase a one unit investment property with twenty percent down and the property needs another forty percent in improvements.  HomeStyle will definitely be a path to explore!   Maximum renovation dollars will be up to a maximum of 50% of “As-Completed Value”.  For owner occupants, you are able to purchase with simply 5.0% down. (based on credit requirements)  The general contractor does a work write up, which is turned over to the appraiser.  The appraiser will appraise per the purchase price and work write up provided by the general contractor of work to be performed for the end goal of the new “As-Completed Value”.   This appraisal indicating the “As-Completed Value”, will determine how much renovation dollars are actually available for your renovation budget.   The general contractor receives the first ten percent release at the loan closing to purchase materials to begin work.  Depending on the size and scope of the project, we are able to give up to six months for the work to be fully completed from date of loan closing.   This is a four draw schedule and work is inspected by the original appraiser.  Your contractor must have obtained all permits from the City or County before the first draw.    This is really a great way to get your purchase and renovations dollars all in one loan!

 

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