fnma homestyle: FNMA HomeStyle renovation loans made simple
- 05/14/14 11:45 AM
I get so many calls on these loans...Here are some of the basics: Max Loan Amount: $417,000 (regardless of area of the country) Renovation costs up to MAX. of 50% of "as-is" value on Purchase or Refinance 95% LTV max. on Single Family, Primary residence (lower LTV for 2nd hm/Investments) No "sweat equity"; NO "DIY" (Do-It-Yourself) Construction to be completed within 6 months of closing date Eligible property types: 1 or 2 unit, site built homes, PUDs, Warrantable condos Loan Amount on PURCHASE is based on LTV derived from the LESSER of: - the "as-is" purchase price, renovations costs, contingency costs(if financed), eligible soft costs, interest … (0 comments)
fnma homestyle: Renovation Financing - a key to saving purchases in tight markets?
- 04/13/14 07:39 AM
With many areas in the Houston(TX) area at LESS than 2 months' inventory - there is a little known secrect for keeping the Buyer interested: suggest that they consider a Renovation 1st purchase mortgage. Why? For example: Buyer LOVES the home - Except: wife says the Kitchen is outdated, or husband wishes it had a swimming pool (do you really want to tell them to do 2nd mortgage later?). Option: do a 1st mortgage that INCLUDES the renovation cost. Up to 95% LTV. Example: LTV: 95% PURCHASE/RENOVATIONS Costs: Sales Price: $ 190,000 Labor/Material: $ 39,500 Soft Costs: $ 2,200 Contingency: $ 4,170 Monthly PITI: 0 TOTAL: $ 235,870 "As Completed" Value: $ 250,000 Maximum Loan Amount: … (1 comments)
I get so many calls on these loans...Here are some of the basics:
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