I know, I know, I know… a LOT of posts sounding eerily similar these days. First it was the Fannie Mae HomePath Mortgage for foreclosures. Then I discussed the Fannie Mae HomePath Renovation Mortgage (also for foreclosures). I even referenced the FHA 203K Streamline mortgage post I wrote in 2009.
Today, the rehab discussion moves to the Fannie Mae HomeStyle Renovation Mortgage. Think of the HomeStyle as being a cousin to the HomePath because they do share features:
- all renovations must be completed by a state licensed contractor
- structural repairs/additions can be made to a home
- luxury items such as swimming pools, hot-tubs, fences, etc. are allowed
- all renovations can be purely cosmetic (new paint, carpet, tile, appliances, etc.)
- a 10% contingency reserve is required
- program for primary residences and investment properties
They share features, but there are some really important differences:
- there is a $5,000 minimum renovation requirement
- the maximum renovation amount is 50% of the “after completion value”. If the value is $500,000, then up to $250K can be put into renovations. An amount of up to $100K can be put into a home completion value at $200,000
- can be used to purchase a property or refinance one already owned
- minimum down payments are increased (compared to HomePath) to 5% for a primary residence and 25% for an investment property
- 620+ credit score required (a larger down payment may be required for scores under 680)
Using the HomeStyle program, buyers/home owners can make dramatic changes to a home. The program is ideal for individuals looking to add on another story, make a significant addition, or completely gut the inside of a home.
As with all loan programs, to get started, one must be prequalified. If the property is in the state of Georgia, I’d love to start the mortgage process with you. All you need to do is contact me. I can answer questions about the HomeStyle proram (or any of the rehab programs mentioned in this post), and we can get the prequalification process started!
