Fannie Mae Homestyle® by Compadre Mortgage
The Fannie Mae Homestyle renovation loan is a single close loan that enables borrowers to purchase a home that needs repairs, or refinance their existing home and include the necessary funds for renovation in the loan balance. The loan amount is based on the "as-completed" value of the home. There are no required improvements or a minimum dollar amount for the repairs. Repairs or improvements, however, must be permanently affixed to the real property and add value to the property.
Homestyle® buyers succeed in the market just above the flippers market and just below the too much for the "Do it Yourself" market.
When you buy or refinance a home, HomeStyle ® Renovation allows you to finance improvements for up to 75% of the property’s as-completed value. (That’s the appraised value of the home once the upgrades are completed).
Renovation funds get bundled into your mortgage under one loan, so you only make one monthly payment. If you’re a first-time homebuyer or combining HomeStyle® Renovation with a HomeReady® mortgage, your down payment can be as low as 3%. You can also take advantage of mortgage insurance that can be be canceled in the future and today’s competitive interest rates, which may be lower than a home equity line of credit or personal loan.
• 620 Minimum qualifying credit score
• Max renovation amount calculated by repairs / renovation as a percentage of appraised value.
• 1-2 Unit Primary Residences
• 1 Unit second homes and investment properties
• Planned Unit Developments (PUD) and FNMA approved condos
• 15 year fully amortized
• 30 year fully amortized
• Not eligible for ARM transactions
What type of homes may benefit?
• Distressed Properties Those that were in foreclosure or short sales that may have been neglected and in need of repairs.
• Fixer Uppers Homes that are In need of more than Just a few minor fixes These homes may need big renovations or structural repairs such as a new roof. etc.
• Older Homes Homes that have been around a while that need some updating are good candidates for renovation loans
• Owners of older homes can use these loans to make the home more livable by adding more space. replacing outdated carpeting. installing energy efficient doors and windows etc.
• Homes for Disabled/Elderly Owners can install a wheelchair ramp. grab bars. lower counter tops or a wheelchair accessible shower.