Homestyle and Homepath
Congratulations! You are investigating what might possibly be the best-kept secret to building equity in a new (to you) home. Certainly there are no guarantees, but the possibilities are nearly endless as to what you could do to put your own signature on your new home through a renovation loan.
Let’s face it – the home buying process is very trying. You spend countless hours scouring the Internet, driving neighborhoods, and walking through homes – just to end discouraged that the inventory of available homes these days isn’t quite up to par. How often have you identified the neighborhood you like, but find that the homes that are available are not “move in ready” and may also have issues that will keep the banks from lending funds.
Fannie Mae HomeStyle® Renovation Loan:
This loan is very similar to the FHA 203(k) loan, but for qualified borrowers, it is cheaper and has more flexible options to remove PMI from the loan (see your lender for more details):
Customize a home to your specifications with substantial renovation work — expansion or improvement
One conventional, fixed-term renovation loan covers both your purchase or refinance and the renovation work
Available for single family residences, condominiums and multiplexes (1-4 units)
Fannie Mae HomePath® Renovation Loan:
Available to finance Fannie Mae owned properties
Up to $35,000 total renovation costs
Finance up to 95% of purchase price
No mortgage insurance (see your lender for details)