Fannie Mae Increases Allowable Renovation Budget on the HomePath Renovation Loan
Fannie Mae has improved the HomePath Renovation loan program by increasing the renovation budget to the lesser of 35% of the "as completed" appraised value or $35,000. Previously Fannie Mae limited the HomePath Renovation loan program to the lesser of 20% of the "as completed" appraised value or $30,000.
The HomePath Renovation budget includes not only the contractor invoice cost of the repairs, but also the contingency reserve and other soft costs such as permits. The contingency reserve is only required when putting down 5% or less.
This increase is particularly beneficial for lower priced homes, which were being limited on the size of the renovation project by the 20% of the "as completed" appraised value.
To calculate your HomePath Renovation budget a new online HomePath Renovation Calculator is now available for primary residential purchases. Investors can also use the HomePath Renovation loan program but need to put down 25% as a down payment.
To determine if you qualify for a HomePath Renovation Loan you can contact HomePath-Renovation.com at (866) 552-5912 or if you want to get started on your loan application right now complete a secure encrypted online application in order to receive your loan pre-qualification within the next four business hours.