What are the maximum loan amounts allowed on a FHA 203k or Fannie Mae renovation loan? The max loan amounts are the same as the corresponding loan after down payment?
- FHA 203K – The maximum loan amount for FHA loans in counties which make up Northeast Florida is now $304,750 after down payment.
- Fannie Mae Renovation loan – The maximum loan amount for a SFR is $417,000 after down payment. However, Fannie Mae loan limits are higher for multi-family properties. 2 units-$533,850; 3-units-$645,300; 4-units-$801,950
- What are the benefits of HomePath mortgages? The biggest benefit has to do with condos since Fannie Mae HomePath condos do NOT require approval and there is NO appraisal. For investors on HomePath the minimum down payment is just 10%, and for those buyers who want to perform all the repairs/improvements themselves, since there is no appraisal then can close and then start the work. NOTE – HomePath Renovation loans DO require appraisals and have different down payment requirements.
- When writing a CONTRACT for an FHA 203k or Fannie Mae Conventional Renovation loan what additional information needs to be included? Generally, you will write the contract As-Is (not always for resales) for the sales price of the house. Just check “FHA” or “Conventional” like all transactions. Its best practice to note in “Other Terms & Conditions” that the “Buyer to use FHA 203k / Fannie Mae Homestyles Renovation loan to address property conditions”. There are times with a resale that you might write a clause involving value but not on REO or short sale properties.
- When do your payments start on a FHA 203K or Fannie Mae renovation loan? Since in the end they are standard loans the first payment would be the same as every home loan. You close in December your first payment is February 1st. However, on projects where the house is not habitable or there is a larger scope of work, the buyer can finance up to 6 mortgage payments into the loan (or when the house is habitable).
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