What Is a Homestyle Renovation loan Mortgage?
A Homestyle Renovation loan is flexible program for conventional renovation that enables borrowers to buy a home in almost any condition. IT can be used for primary occupant, second home and even investors. A Homestyle renovation loan is a great substitution for the old “Homepath Renovation Loan” that was retired until Octobers of 2014. Homestyle can be used on any home, not just FNMA Homepath properties.
A HomeStyle Renovation loan allows buyers to make home improvements based on the “after repair” value of a property, eliminating the need for a 2nd mortgage, home equity line of credit or other expensive financing. Homestyle can also alleviate the need for curing property conditions that may prevent financing by allowing borrowers to include appraiser required repairs as well as preferential repairs inside of the loan. Buy properties in “as in condition” and repair after closing. Borrowed funds can be applied to any renovations or repairs that are permanent fixtures and increase the value of the property. Home buyers, investors, second home and vacation occupants are all eligible to apply.
The Homestyle renovation loan loan is perfect for renovating properties with poor conditions that make them ineligible for conventional financing. Such conditions might include and safety or health hazards, and practically any livability issues the homeowner would like to upgrade. Improvements could encompass such things as floor coverings and other finishes, along with new appliances for the dwelling.
There are no limits on the dollar amount for repairs with a HomeStyle Renovation Loan, and there are no exclusions for luxury options such as tennis courts, outdoor kitchens or swimming pools. The renovations can be structural or increase the footprint of the home’s dimensions. This loan type can be applied to any home, not just foreclosed properties.
Some key benefits are:
- Combining the renovation and purchase costs in 1 simple closing
- Borrowing unlimited funds (with appraisal ability)
- Buyers can move a home, fix structural issues, or make an addition to the home
- As little as 5% down for Primary occupants
- As Little as 10% down for Second homes
- As Little as 15% down for Investor Property
- In certain transactions with 20% down borrower forego mortgage insurance
- One low-cost home loan