I just learned of a new program from Fannie Mae called HomeStyle which acts much like a FHA 203K rehab loan. The loan amount is much greater, up to $417,000 and works much the same way as the 203K. This program is great for larger loans because the FHA limits in the metro area are $365,000. We are in the process of getting a direct endorsed FHA underwriter and once that happens I will be able to offer the 203K loan but until that time I do have investors that offer the HomeStyle loan.
Highlights
Fannie HomeStyle Renovation Program
The Fannie Mae HomeStyle Renovation program allows borrowers to combine the purchase or refinance of a home with the costs to renovate or extensively remodel the property. At closing all funds for renovation will be escrowed in an interest earning account. After all renovation work is complete, any remaining funds in the renovation escrow account will be used to pay down the principal balance of the mortgage. Soft costs such as architectural services, engineering and permit fees may be financed. Full builder third-party contracts only.
This product is available on owner occupied 1 and 2 units, second homes and
investment properties. Must have at least a 680 fico - but 700 score to
go to 95% LTV.
15 or 30 year terms
PROPERTY VALUATION
PURCHASE:
Loan amount is based on LTV derived from the lesser of: 1) "as-is" purchase price, renovation costs,
contingency costs (if financed), eligible soft costs and interest reserve or 2) the "as-completed" value of the
home.
RATE/TERM REFINANCE:
LTV is based off appraised value (subject to). Loan amount not to exceed 100% of costs (total of liens on
property plus costs of improvements and closing costs). Cash out it not allowed.
If you have questions about the Homestyle Rehab Loan program, I suggest that you get in touch with me to learn more. Luke Carrier--952-908-9430
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