Fannie Mae HomePath Renovation Mortgage


I know what you are thinking… “didn’t he recently write about the HomePath program?” Yes, I did recently put up a post about the Fannie Mae HomePath Mortgage program, but I didn’t mention anything about the Fannie Mae HomePath Renovation Mortgage. Think of the “renovation mortgage” as the sibling to the “mortgage.” Let me explain.

The HomePath Renovation Mortgage shares many of the same features of the HomePath Mortgage program:

  • available for primary residence, second homes and investment properties
  • need a minimum of 660+ credit score
  • only a 3% down payment required for primary residence (15% for investment properties)
  • no private mortgage insurance on the loan

The best part of this program is all of the $$$ a buyer can use to put some tender loving care into a home. There is no minimum repair cost associated with the Renovation Mortgage, and buyers can finance the lesser of 20% of the “after completion value” of the home OR up to $30,000.

To simplify things, for homes with an “after completion value” of $150,000 or more, the maximum renovation amount will always be $30,000. Any amount under $150,000 will be 20% of the value. One thing to keep in mind is the maximum renovation amount must include a 10% contingency reserve.

Let’s say you have $30,000 for renovations, what can you do:

  • unlike the FHA 203k streamline mortgage, structural repairs/additions can be made to a home. This means the buyer can knock out walls, add a room onto the home, etc.
  • luxury items such as swimming pools, hot-tubs, fences, etc. are allowed
  • renovations can include appliances
  • all renovations can be 100% cosmetic (no structural changes to the home), so new paint, carpet, tile, etc. is certainly a fine way to go too!

The Fannie Mae HomePath Renovation mortgage is a great way to purchase a home and make some repairs to it with no out of pocket costs to the buyer outside of the down payment on the loan.

Do remember that Fannie Mae designed this loan program to facilitate the sale of homes they own. In other words, they are foreclosed homes. There are numerous properties available, and they can be viewed here.

Those interested in making an offer on a home to use this rehab loan will need a prequalification letter, and that is something I can provide! If you are looking to get prequalified, learn more about interest rates for this program, total monthly payments, etc., feel free to call or email me. I would enjoy helping you through the mortgage process!

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7 Responses to “Fannie Mae HomePath Renovation Mortgage”

  1. Wisconsin Home Loans Says:

    This is a great program and quite popular with our buyers as well. We are going to continue to help buyers with these great programs.

  2. Fannie Mae HomeStyle Renovation Mortgage « The Mortgage Blog Says:

    […] The Mortgage Blog Professional, Honest Mortgage Advice from Dunwoody Mortgage Services « Fannie Mae HomePath Renovation Mortgage […]

  3. Contingency Reserve Requirements on Renonvation Mortgages « The Mortgage Blog Says:

    […] question I get regarding one of the requirements on the Fannie Mae HomeStyle Renovation Mortgage, Fannie Mae HomePath Renovation Mortgage, and the FHA 203k Mortgage… “Why do these programs require a 10% contingency […]

  4. cleve Says:

    We are buying a Fannie Mae foreclosed home in AZ. We are using money from a HELOC loan at 2.75%. from a home that we own in NM. It will be our primary residence and we are selling our NM home. Will we qualify for money for renovation? It needs help.
    Thanks, Cleve

  5. Clay Jeffreys Says:

    Hey Cleve,

    I can’t answer that for you without knowing all your debt, credit, income, etc. You need to speak with someone who can do this loan program in AZ. I cannot.

    Also, you might want to also ask about the down payment coming from a home equity line on a property you own/might be trying to sell. You will have to source the funds, and $$ from a home equity line might not be an acceptable source.

    Hope that helps!

  6. Mortgage Interest Rates Forecast Says:

    Mortgage Interest Rates Forecast…

    Fannie Mae HomePath Renovation Mortgage « The Mortgage Blog…

  7. notanotherteenmommy Says:

    Thank you! This was one of the more helpful posts I’ve seen about this program. It sounds like its worth looking in to!

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