Fannie Mae HomeStyle Rehab Loan

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I regularly receive requests for loan programs that will allow borrowers to make repairs on a home and roll those costs into the loan. Due to the financial crisis and the risky nature of these loan programs, conventional rehabilitation loans virtually disappeared.

The only consistent option was the FHA 203k program, which is a great loan program, but only allows cosmetic/non-structural repairs on a buyer’s primary residence. It would be great if there was a program that allowed both buyers and investors the flexibility needed to do more than just cosmetic repairs… and now there is!

Introducing the Fannie Mae HomeStyle loan program. This is a renovation program like the FHA 203k program, and they share some similar traits.

  • Both programs allow for cosmetic remodeling/repairs
  • The funds needed for the work on the property is rolled into the loan
  • Available on primary residences for purchases & refinances
  • Work must be completed by a licensed contractor

There are similarities, but definitely note the differences. Fannie Mae HomeStyle:

  • Available for borrowers (10% minimum downpayment) and investors (20% minimum downpayment) on purchases and refinances
  • Structural repairs/changes/improvements allowed
  • Luxury items such as pools, hot-tubs, fences, etc. allowed
  • minimum repair amount of $5,000 required

FHA 203k:

  • only 3.5% down payment required
  • No minimum repair amount required
  • Available for primary residence purchases & refinances only
  • No structural repairs/upgrades OR luxury items allowed
Who can benefit from either of these loan programs? Anyone looking for a loan program that will allow you to knock out a wall or two OR investors looking for a way to cover remodeling costs OR even someone looking for a way to pay for carpet and paint in their new home.
If this is you, program options are now available! Don’t hesitate to contact me to learn more or get prequalified for either of these great programs.
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3 Responses to “Fannie Mae HomeStyle Rehab Loan”

  1. Barbara Williams Says:

    Mr. Jeffreys,

    I am in the process of refinancing my Fannie Mae owned home and was wondering if the Fannie Mae Home-Style program is still being offered in Georgia. Thank you. Barbara Williams

    • jpinkerton Says:

      Barbara,

      Yes, the program is still available and it applies to purchases and refinances. I noticed you contacted me directly, and will give you some more details via email.

  2. Buffy werle Says:

    Hi,
    Is everyone eligible for these loans. We found a home thats in need of alot of repair but it isn’t a fanny mae property. We live in Florida.
    Thanks!

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