“If You Dream It, We Finance It”
Fannie Mae’s HomeStyle Renovation Loan is a conventional loan with the ability to allow you as the homeowner or buyer to make the necessary repairs, upgrades or remodel to any residential home – All consolidated into one convenient loan. This loan was rolled out to compete with FHA’s 203k repair loan, yet with less limitation and restrictions. With the HomeStyle Renovation Loan you can repair or remodel anything you need to as long as it is attached to the existing home. You can even include adding in a pool and/or a fence. With FHA 203k you simply cannot.
There are many reasons why the HomeStyle Renovation Loan can be a great loan to either remodel the home you already own or add on to that home you’re looking to purchase that doesn’t quite have everything you need. Either way, it’s the perfect loan to allow you to add your personal stamp and make the statement you’ve always wanted to make with where you live.
Sometimes the only renovation you need here in Florida is a pool installation. The Fannie Mae HomeStyle Renovation Loan allows two ways you can finance a pool.
Let’s face it, money is still cheap these days. And other than your down payment, why not roll in the cost of the renovation and finance it as one loan and keep your hard earned money in hand and possibly leverage it somewhere else.
The more items you update such as roof, windows, shutters, structure, insulation, the more your cooling and heating bills stay low. It’s always great to remodel a home to look beautiful, but the real savings will be enjoyed when you starting receiving your utility bills each month. Not to mention a more affordable homeowner’s insurance policy because of an updated home.
We all know how stressful a home search can be. Everyone ideally looks for that perfect move in ready home. The obstacle that is quickly realized is that once you do find that perfect home, there are six other offers and it becomes extremely competitive. Why not remove yourself from the competition from the beginning? Find the area you like with the best location, schools and community and pick the worst house in the neighborhood. Then make it your dream home with the renovation home loan. Ask yourself which is worse: Spending 4-5 months home shopping with nothing to show for in the end? Or starting out with home renovation loan from the beginning and spending 2-3 months with renovation and then move in?
If want to renovate the home you already live in, have equity and would like to take cash out, then you would be limited to 80% Loan to Value. However, with the renovation loan, they treat it like a rate/term loan and you can go all the way up to 95% LTV of the future perceived value! That’s a huge advantage! If it’s for a purchase the same LTV’s apply. You can add in all the renovation costs into the loan and still only put down a minimum of 5% for primary, 10% for second homes and 15-20% for investment properties.
More times than not you will walk into instant equity renovating an existing home than compared to a new home construction. The reason is you buying an existing home at a lower price already, completely remodeling it to make it look brand new and appraised value usually comes in 5-15% higher than overall costs. So it’s a no-brainer!
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