Need to finance a pool?

Mortgage and Lending with HomeBridge Financial Services NMLS# 184490

By now you are probably familiar with the FHA 203k Rehab loan but did you know that Fannie Mae offers a rehab loan which may allow for more flexibility? The Fannie Mae HomeStyle Rehab loan allows for installation/repair of luxury items that are not allowed un the FHA 203k.  Also you can have High Balance Loans – you are not limited to $417,000.00. In many cases we can finance up to $800,000.00, but the limits will vary from county to county so click here to review the county loan limits.

This is a great loan to use if you are exceeding the FHA loan limit or trying to install luxury items such as a pool or an outdoor kitchen.

Here are two examples where the Fannie Mae HomeStyle Loan can be utilized:

  1. Unfinished New Contraction – FHA 203k requires a Certificate of Occupancy (CO). In some cases that’s just not possible to obtain, but luckily the Fannie Mae HomeStyle loan does not require it. Fannie Mae only requires that the home is 75% finished or “substantially complete”.
  2. Mortgage Insurance – Borrowers with 20% down can utilize this loan to avoid mortgage insurance. FHA requires monthly mortgage insurance for the 5 years regardless of your down payment (30 year fixed rate mortgage) whereas the Fannie Mae HomeStyle loan follows conventional guidelines so with 20% down there is no monthly mortgage insurance.
  3. Non-owner purchases / Investors – Investors are not allowed under FHA.  However, Investors may purchase using the HomeStyle loan. They may even perform rehab on the property. This also applies to 2nd homes, Condos that aren’t FHA approved, and Multi Unit Dwellings (may have LTV restrictions).  Can you say, "House flipping?"
  4. Already have an FHA loan – Well that’s not a problem with the HomeStyle loan because there is no limit to how many properties you may own under this program.
  5. Flexibility and Scope of work – As previously mentioned, items deemed “luxury” by FHA are allowed!! This means you are not limited with your landscaping project, your pool installation/repair, or the addition of your outdoor kitchen.

Certainly there are a lot more scenarios and uses for this loan product. In my experience, each rehab loan is different. Call me today and we can discuss your needs as well as formulate a plan to accomplish your rehab goals or visit our website at

Comments (1)

Elizabeth Birmingham
EB Realty - Grand Junction, CO

I did not know that you could finance luxuey items like pools with Fannie. Are there loan limits on the amount of a rehab? If you have a conventional loan can it be an add on?

Sep 09, 2011 07:35 AM