With a Fannie Mae HomeStyle renovation loan, you can purchase or refinance a property and have funds for remodeling or repairs – without the need for a second mortgage, home equity loan or line of credit.
A HomeStyle loan is an easy and affordable option for financing major home improvement projects. If you’re looking to rehabilitate your current property or want to buy or refinance a fixer-upper, choosing one HomeStyle renovation mortgage instead of two separate loans can save you money and time. For a closer look at the advantages of this Fannie Mae program, read on.
Flexible Loan Options
One of the greatest benefits of the HomeStyle renovation program is its flexibility.
This type of home loan applies to owner-occupied properties, but borrowers can also take out financing for rental or investment properties and second homes in need of rehabilitation or remodeling. HomeStyle loans are available to first-time and repeat home buyers, and borrowers can choose fixed-rate or adjustable-rate mortgages.
A HomeStyle loan doesn’t require a large down payment or strong equity position.
To buy a single-unit property with a fixed-rate renovation loan, the HomeStyle program only requires borrowers to put down 5 percent of the purchase price. For homeowners who want to refinance, 5 percent equity is typically enough to qualify.
With a HomeStyle renovation mortgage, you can finance a vast range of home improvement projects.
Some loan programs place restrictions on the types of renovation projects homeowners can finance. The HomeStyle program specifies that any home improvements must add value to the property, but the possibilities are nearly endless. From finishing a basement and remodeling the interior to building an addition, performing structural repairs or even installing a swimming pool, homeowners have a wide array of options.
Is a HomeStyle Renovation Loan Right for You?
Are you looking to buy a home than needs a little TLC? Or do you want to refinance your mortgage and have money for home improvements or repairs? A Fannie Mae HomeStyle renovation loan could be your ideal solution.
But, the HomeStyle program is not your only choice. As we mentioned, you could get a home equity loan or line of credit. A second mortgage might also meet your needs. Or, you may prefer a FHA 203k loan, as it requires just a 3.5 percent down payment and has more lenient eligibility requirements.
If you’re ready to explore your renovation loan options and you live in northern Utah, the mortgage experts at Integrity First Lending can help.
With decades of combined experience in the home lending industry, our friendly team can explain the various financing options and find a solution that’s right for you. And with Integrity First Lending, you can count on having a smooth and easy experience. Contact our South Jordan or Tooele, Utah, office to discuss HomeStyle renovation loans today.