Fannie Mae Homestyle Renovation Loans

HomeStyle Renovation financing combines home purchase or refinance with home improvement financing in one loan with one closing. For borrowers considering major home improvements and GREEN renovations, this option provides an effective and affordable way to leverage the future value of a home with a single-close first mortgage. Unlike traditional cash-out refinances and home equity lines the Fannie Mae Homestyle is based on AFTER REPAIR VALUE. Using the “as-completed” value provides more room than traditional loans to do your renovations

Allows for Higher Loan Limits

Conforming loan limits are typically higher than those of FHA. Normally the loan limit is $417,000, but in higher cost areas like Washington DC, Baltimore, Virginia, & California the Fannie Mae Homestyle loan limit can be MUCH higher. Contact us directly to find out how much you can borrow in your area.

Available for INVESTORS & SECOND HOMES!

FHA loans are always for owner occupants only buying primary residences ONLY. The Homestyle Renovation Mortgage will allow for both investors and buyers of second homes to participate

Virtually Unlimited on Scope of Work

While the FHA 203K places restrictions on the type of repair you can do, the Homestyle allows you to do virtually whatever you want in terms of repair. You can even add / repair luxury items like pools and spas with the Homestyle Renovation loan.

Avoidance of PMI

While 30 year fixed FHA loans contain mortgage insurance no matter how much you put down, Fannie Mae Homestyle loans allow you to put 20% down and avoid that expense.

Unfinished Builder Foreclosures

FHA loans require a Certificate of Occupancy that is issued when the home is complete. However, if a builder was foreclosed on during construction a Certificate of Occupancy (C.O.) was never issued. That makes the home ineligible for FHA financing. On Fannie Mae Homestyle Renovation loans we don’t need a C.O., we only require the home be substaintally complete.

You Can Have More than One HomeStyle Renovation Loan

Typically, you are only allowed ONE FHA loan at a time (relocation, growth in family, etc may be exceptions). However, Fannie Mae will allow you to have more than one loan at a time.

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