Forgotten Your Password?

Need to Register?

Richard Woodward

HomeStyle Renovation Mortgages

Friday, September 26, 2014 - Article by: Richard Woodward - Service First Mortgage - Message


Whether you are looking to purchase a home that needs renovations or repairs or are refinancing an existing mortgage and looking to make home improvements, the Fannie Mae Homestyle(R) Renovation Loan is an excellent home loan choice. Are you looking for a move in ready Texas home but can't find one? Why not buy a home in the perfect area and turn it into your dream home?

The great feature about this renovation loan is that it is a single first mortgage, not an equity line of credit, construction loan, or second mortgage. The fact that the Fannie Mae Homestyle(R) Renovation Loan is a single mortgage means there is only one closing thus saving you both time and money. First mortgage loans typically offer a lower interest rate than an equity line or a construction, which is an additional cost savings.

How Much Money Can You Borrow For the Renovation Loan?Renovations, repairs, or improvements cannot exceed 50 percent of the "as-completed" value of the property with a first mortgage. The "as-completed" value is the market value of the home factoring in the improvements and renovations.

What Type of Repairs or Improvements Are Allowed?

This is the good part of the deal! Fannie Mae will allow almost any type of repair to the home. This can include a new roof, updated heating and air conditioning system, better insulation, new floor covering, energy efficient doors and windows, plumbing and electrical repairs, and on and on. Even foundation repairs can be made! This provides a great opportunity for Texas home buyers. Buy a home with less qualified buyer competition. This could allow you to save money on the purchase price. Most lenders don't do this program but Interlinc Mortgage has an entire team to make the process easy.

Even better, the loan allows for luxury items. High dollar pieces such as swimming pools, outdoor kitchens and luxurious landscaping can be financed in the loan. So long as the improvements are permanently fixed to the property and add value, mostly anything goes. Add a bedroom or bathroom for the growing family.

Related Searches:

Didn't find the answer you wanted? Ask one of your own.

Get an answer
Subscribe to our news feed.