Fannie Mae HomeStyle home loans enable homeowners to finance the cost of repairs by rolling it into the loan. It can be used for the purchase of a new home or the refinance of a current home. It may cover minor and major tasks and therefore is a great option for homes requiring renovation. The following Florida HomeStyle renovation home loans overview provides useful information.
Types Of Properties Acceptable For Fannie Mae HomeStyle Home Loans
Fannie Mae HomeStyle home loans can apply to a wide range of property types, however there are certain restrictions. Single family homes usually qualify. Condominiums must be qualified by FNMA and only interior renovation is allowed. Multi-family dwellings are permitted but the number of units may not change from the work. Buildings that do not be approved are mixed use properties, new construction, cooperatives, and multi-family homes that will not be utilized as a primary residence.
Limits And Terms
There are two different value figures. One is the "as-completed" value of the home determined by a professional appraisal. The second is the contact price of the home plus the total repair cost. The lower of these is used to figure out the loan-to-value (LTV) percentage. This determines the down payment and amount loaned.
The maximum LTV varies based on the property classification. For real estate that is used as a primary home, 95% is permitted for single family properties, 85% for buildings with 2 units, and 75% for buildings with 3-4 units. Second homes are restricted to 90% and single family investment homes 85%. Cash out is not allowed for these mortgages.
About Renovations
Renovation figures must be submitted as part of the financing application. All estimates must contain thorough descriptions of the work, labor and material costs. Funds for the contractor fees are placed into an escrow account at closing and released as projects are completed. Certain documentation must be completed by every contractor. Home buyers are not allowed to receive payment for repairs that are self-completed. All renovations must be completed 6 months from closing.
Florida HomeStyle Renovation Home Loans Overview
This Florida HomeStyle renovation home loans overview covers only a few of the most popular questions about Fannie Mae HomeStyle home loans. Additional conditions and restrictions apply to program processing and approval. This information is additionally subject to change without notice. Consult with a mortgage professional for updated facts and to assess if it is feasible for you.
