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TYPES OF RENOVATION LOANS

Renovation Loan Programs

HOMESTYLE®:

To be used on conventional loans for both appraiser-required repairs and repairs the borrower wants done to the property. They can be utilized on second homes and investment properties. The repairs can be structural in nature or cosmetic, but they must be attached to the property and add value. The only time appliances (stove and dishwasher) may be included in the renovation is if there is a full kitchen remodel including cabinets and countertops and the appliances (stove and dishwasher) will need to be built in/attached to the property.

HOMEPATH®:

To be used on Fannie Mae foreclosed properties only for appraiser-required repairs and repairs that the borrower wants done to the property. They can be utilized on second homes and investment properties. The repairs can be structural or cosmetic in nature, but they must be attached to the property and add value. The only time appliances may be included in the renovation is if the kitchen is being remodeled, and the appliances will be attached to the property. This program allows a borrower to purchase a property that requires light to moderate renovation. The one loan amount includes both the funds for the purchase and renovation — up to 35% of the as-completed home value, no more than $35,000. *HomePath® and HomeStyle® are registered trademarks of Fannie Mae.

FHA 203K FULL:

This is a government-insured loan that allows you to buy a home that is in need of major repairs and/or renovations. The repairs can be structural and/or cosmetic in nature. The lender loans you money to buy a home and complete repairs in a single mortgage. This rehab loan offers fixed rates with only a 3.5% down payment required. The home must be your primary residence. The FHA 203K is also available for refinance transactions.

MINIMUM PROPERTY / APPRAISER / UNDERWRITER REQUIRED REPAIRS:

To be used on FHA financed loans where the appraiser or underwriter has required MPR (minimum property requirement) type repairs.