Special offer

Renovate a Short-Sale or Foreclosure With a Fannie Mae Loan

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Mortgage and Lending with Guaranteed Rate 279770

Let's face the facts.  All buyers today are looking for a great deal when purchasing a home.  It's definitely a buyer's market and many of the available listings are distressed property sales including short-sales and foreclosures.  These properties give buyers an excellent opportunity to purchase a desirable home at a great price.  The major challenge for many potential buyers is the current condition of the home.  Many of these properties need a lot of work, which generally takes more money than the buyer has available.

Fannie Mae markets its own foreclosures under the HomePath brand.  They also offer special HomePath Financing to complete the purchase of these properties.  Fannie Mae HomePath also offers a Renovation Loan for eligible properties that allows the buyer to finance the cost of repairs or upgrades into their mortgage loan.  This makes it possible for potential buyers to purchase and renovate a home with as little as 3% down on the entire project value.  HomePath is a terrific way to get a great deal on a Fannie Mae foreclosure and make the property your dream home with a minimum cash outlay.

Of course, if you aren't purchasing a Fannie Mae foreclosure that is HomePath and Renovation loan eligible, this special financing isn't available. So, how does a buyer take advantage of a great deal that needs work, but they don't have the cash to complete the repairs or upgrades?

The answer is the "Fannie Mae Homestyle Renovation Loan".  With this loan product you can purchase a resale, foreclosure or short-sale and finance the cost of the improvements into your mortgage.  The loan is available with as little as a 5% down payment on a primary residence based on sales price plus renovation costs.   You can even finance a second home at 80% LTV or an investment property at 75% LTV.  The only limitation is the loan amount is capped at $417,000 (the Fannie Mae limit in Florida).

The Fannie Mae Homestyle Renovation Loan can greatly increase the available inventory pool that a buyer might consider.  You can turn almost any property in any condition into a dream home with very little money out-of-pocket.  Best of all, a buyer can get a Fannie Mae Loan with very affordable interest rates to purchase a home that would normally take a cash buyer.

As a buyer or a Realtor, broaden the available pool of homes you can look at with a Fannie Mae Homestyle Renovation Loan.  Tired of losing great deals to cash buyer?  Check out the Fannie Mae Homestyle Renovation Loan and make an ugly home your dream with less money out-of-pocket and a very low fixed rate mortgage.

Harvey Collier of First Trust Mortgage is an authorized Fannie Mae HomeStyle Renovation Specialist.  Call 954-629-6151 today to inquire how you can use this program to create your dream home and finance it in one convenient loan package.