Fannie Mae Homestyle Renovation Loan

Fannie Mae Homestyle Renovation Loan

The HomeStyle® Renovation mortgage provides a simple and flexible way for borrowers to renovate or make home repairs with a conventional first mortgage, rather than a second mortgage, home equity line of credit, or other more costly methods of financing. With constrained housing supply and evolving borrower needs, HomeStyle Renovation can help lenders make the most of the growing renovation market while helping their borrowers create a dream home.

Renovation financing that features standard pricing with conventional execution for loans that can be delivered even before the project starts.  It can be used on any renovation project and can help lenders save deals that have repair contingencies. Plus, when used with HomeStyle Energy on energy upgrades, lenders may get a $500 LLPA credit.  Compared with government rehab financing, a conventional loan’s cancellable mortgage insurance may provide a better option for borrowers.

  • Cost-effective way to renovate or repair a home, at the time of purchase or later on.  
  • Upfront draws help borrowers start projects without spending out-of-pocket.
  • Borrowers can qualify for a CLTV of up to 105% with eligible Community Seconds® subordinate financing.


BEGINNING MARCH 17, 2018  HomeStyle Renovation —Announcement SEL-2018-02, we’ve simplified and expanded eligibility for HomeStyle Renovation to help lenders better meet the needs of today’s borrowers. Enhancements include:

  • The maximum allowable LTV, CLTV, and HCTLV ratios will be increased to 97% for 1-unit, principal residence, purchase and limited cash-out refinance transactions.
  • The limit on eligible renovation funds will be increased to 75% of the lesser of the purchase price plus renovation costs, or the “as-completed” appraised value for purchase transactions; and 75% of the “as-completed” appraised value for refinance transactions.
  • Manufactured housing will be eligible with HomeStyle Renovation, with the eligible renovation funds capped at the lesser of $50,000 or 50% of the “as-completed” appraised value
  • HomeStyle Renovation loans may be eligible for representations and warranties relief once the renovation has been completed.

***Clickable Text addition below***

 

Homestyle Flyer

https://drive.google.com/file/d/0B3EyTinY-z3lN2pEYmx1aG1qazRubzgxay1BX2F4dzc1RXhz/view?usp=sharing

Additional Reading 1

https://drive.google.com/file/d/0B3EyTinY-z3lZURyN1BmYUxJdDhBT3pGcTJPeGFDdFJwMHdj/view?usp=sharing

Additional Reading 2

https://drive.google.com/file/d/0B3EyTinY-z3lazVSYlB6bEdCTVpvR3g4OEt2dzR1c284Q2tV/view?usp=sharing

Additional Reading 3

https://drive.google.com/file/d/0B3EyTinY-z3lWjdCS2ZLNk9hcjBpNHBsWmhVZWV5dnhLZlk0/view?usp=sharing