A HomeStyle Renovation Loan enables borrowers to finance repairs/upgrades to their home. Both optional and appraiser required repairs are acceptable. HomeStyle is a Fannie Mae Conventional Loan.
Benefits of a HomeStyle Reno Loan
- Low Down Payment
- Available for Purchases or Refinances
- Finance Required Repairs
- Finance Upgrades/Renovations
- Competitive Interest Rates
- Finance Repairs up to 50% of improved home value
- No Pre–Payment Penalty
- Complete Repairs after loan closes
HomeStyle Eligible Repairs
HomeStyle Reno eligible repairs may include but are not limited to the following:
- Kitchen Appliances
- Upgraded Flooring
- Upgraded or Additional Cabinetry
- Adding Square Footage
- Upgraded or Additional Counter-tops
- Bathroom Remodel
- Landscaping Improvements
- Outdoor Living Areas
Maximum Amount To be Financed
A HomeStyle Reno Loan allows borrowers to finance up to 50% of the home’s improved value* for repairs
*improved value equals the value of home after pool is built or repaired
Minimum Down Payment on a HomeStyle Loan
Contact us for more information on minimum down payment required.
The down payment for a HomeStyle home loan is a 2 step calculation:
Step 1: Purchase Price + Cost of Repairs + Contingency = Total Cost to Borrower
Step 2: Total Cost to Borrower x min down payment % = Down Payment Required
Time to Complete Repairs/Upgrades
The HomeStyle Reno Loan allows up to 120 days after closing for repairs to be completed. Time clock starts on the date the loan closes. Exceptions to the 120 day rule granted on a case by case basis.
Contractor Regulations
The HomeStyle program allows of up to 3 contractors. The contractor(s) cannot be a family member, realtor/loan officer involved in the transaction or the borrower’s employer.
Contractor(s) must be approved by PrimeLending. Documents needed to review a contractor include:
- Escrow Holdback Checklist
- W-9 from Contractor
- Contractor Permit Advisory
- Itemized Bid
- Borrower Acknowledgement of Repair Escrow
- Borrower’s Contractor Acknowledgement
- Contractor Profile Report
- Applicable licenses
- Liability Insurance
- BBB info/trade association memberships
Other Renovation Loans
Build or Repair a Pool Reno Loan
FHA 203k
VA Escrow Holdback
FHA Escrow Holdback
USDA Escrow Holdback
Contact The HOUSE Team with any questions and to learn more about how a HomeStyle Renovation home loan can help you fix and upgrade your new home!
Team Phone: 602.435.2149
Team Email: Team@JeremyHouse.comcreate new email
By Jeremy House
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