What is the HomeStyle Renovation Loan? It is a conventional mortgage loan that allows you to combines home purchase or refinance with home improvement financing in one loan with one closing.
Did you find a home that could be your dream home but it needs work? The HomeStyle Renovation Loan could be your answer.
You love your current home but just wish it was different, larger, or updated? The HomeStyle Renovation Loan could be your answer.
What kind of work can be done? Anything that is permanently affixed and adds value to the property. New roof, windows, siding, decks, heating or cooling systems, electrical updates, new flooring, renovated kitchens or bathrooms, are all examples of acceptable renovations. Repairs are limited to 50% of the after improved value of the home.
Who can get a HomeStyle Renovation Loan? Loans are available to qualified borrowers where the home will be a primary residence, second home or an investment property.
You may use a HomeStyle Renovation Loan on any property, not just Fannie Mae owned foreclosures. (That is the HomePath loan). Currently we only offer the loan on single family homes, warrantable condos and PUD's for all borrowers. Owner occupants can also use the loan on 2 family homes. If you are looking at renovating a multi-family home you likely want to look at the FHA 203k loan.
In Connecticut how much can you borrow? The maximum HomeStyle Renovation Loan is $417,000. Obviously that is based on what the home is worth, and what you qualify to borrow. For qualified owner occupants that can be up to 95% of the total purchase price and renovations, for investors that is 75% of the total purchase price and renovations.
Let's talk about how you can use the HomeStyle Renovation Loan to make your home your dream home. Make it what you want with a renovation loan. Call me today at 860-306-8029.
Photo credit to @juhansonin
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As quoted in the New York Times "A Little-Known Loan Program", and in the Hartford Courant "Moving In:Couple Combining Households Buys In Newington" and "Moving In... New Britain"