As the inventory of homes for sale in Charlotte, NC and the surrounding areas dwindles, more home buyers are interested in buying a home that needs some renovation work.The catch all term for a rehab loan tends to be a 203K reffering to the FHA 203K renovation mortgage. A less well known product is the Fannie Mae Homestyle Renovation Mortgage. The Homestyle Renovation loan is very much like the FHA 203k product in that it allows a borrower to make repairs or upgrades to a property and finance them into the mortgage. The Homestyle renovation product has no minimum repair requirements, and it can be used on primary residences as well as second homes and investment properties.
The Credit score requirement for a Homestyle renovation loan is 620
The Fannie Mae (“FNMA”) HomeStyle® Renovation Mortgage provides a convenient way for borrowers to make renovations, repairs, or improvements totaling up to fifty percent (50%) of the as-completed value of the property with a first mortgage, rather than a second mortgage, home equity line of credit, or other, more costly financing method. The funds can be used for any repairs or renovations that are permanently affixed and add value to the property.
1. Refinance and renovate an existing residential property.
2. Purchase and rehabilitate an existing structure.
This program was designed to allow a borrower to finance both the acquisition of a property (or pay off
of existing mortgage debt) plus the rehabilitation of a property in need of repair all in one mortgage
loan. Other key features of this program are:
1. No minimum dollar amount requirement for the eligible improvements to the existing structure
on the property;
2. All health, safety, and energy conservation items should be addressed prior to completing
general home improvements;
3. The defined scope of work must demonstrate that once the rehabilitation is completed, the
property will meet minimum property standards as defined by Fannie Mae® and/or the end
investor (First Guaranty Mortgage Corporation – FGMC);
4. A contingency reserve of 10%-20% is required for all renovation loans.
If you have any questions at all about a Fannie Mae Homestyle Loan to purchase a property in Charlotte, Mooresville, Cornelius or anywhere else in North Carolina, South Carolina or Florida please contact our team.