A Fannie Mae type loan which allows you to purchase or refinance a home and roll in all the improvements or repairs of the home into a single loan.
Renovation loans can be done as a purchase or a refinance transaction
HomeStyle is a long-term renovation loan backed by Fannie Mae and available to owner-occupied homeowners as well as small buy-and-hold investors. They are used to primarily purchase and renovate an owner-occupied residence between 1 – 4 units. HomeStyle loans are also available to investors looking to purchase and renovate a 1 unit second home or a single-unit investment property. HomeStyle loans combine the purchase and rehab of a property together as a single loan.
Eligible Properties: 1 – 4 units
Primary, 1 unit second and 1 unit investment properties
Maximum Loan to Value: 95% Primary 1 Unit
Minimum Repair Amount: None
Follows Fannie Mae Guidelines
15, 20 & 30 year fixed rates and 5/1 ARM
Maximum Repair Amount: 50% of after improved value
Structural and non-structural repairs
No minimum loan size
Purchase and Limited Cash Out Refinance
MI Drops off as opposed to an FHA where MIP remains for the life of the loan
Borrower may finance up to 6 months of mortgage payments if home is inhabitable during renovation period.
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PLEASE NOTE: LOAN PRODUCTS AND THEIR GUIDELINES CAN CHANGE AT ANY TIME.
DISCLAIMER: This is not an offer to make a loan or to make a loan on any particular terms. All loan applicants must qualify under underwriting requirements and satisfy all contingencies of loan approval. Rates and terms subject to change without notice. Norcom Mortgage NMLS ID # 71655 (www.nmlsconsumeraccess.org)