Whether you’re buying a new home that’s a bit of a fixer-upper, or refinancing your current mortgage due to plans to do renovations, repair work takes cash that doesn’t usually come with a traditional home loan. Fortunately, you’ve got options. The Fannie Mae HomeStyle Loan lets you perform remodels or repairs to your home while still getting a loan or refinancing—usually at a lower interest rate—with no cash-out hits.
Rather than taking out a second mortgage, a home equity line of credit, or some other, more costly method of financing, a Fannie Mae HomeStyle Renovation loan lets you roll the cost of repairs and renovations into your home loan or refinance with flexible lending guidelines and down payment requirements. The HomeStyle Renovation loan—not to be confused with the Fannie Mae HomePath Mortgage Program for purchasing foreclosures—works much like a conventional loan, and can be used for everything from single family homes and condos to single-unit investment properties. Here are the three main things you need to know when considering a HomeStyle Renovation loan in Kansas City:
• What can you get? Your HomeStyle loan can help pay for repairs and renovations up to a maximum of 50% of the post-renovation appraised value of your home. This can cover anything from carpet and paint to a full kitchen remodel, adding additional rooms, or even building a pool—the only caveat being that any repairs or renovations covered under a HomeStyle loan have to be permanently affixed to the house and must add value to the property.
• Who does the work? While HomeStyle loans do allow for some “Do It Yourself” projects, you will also have to hire a licensed contractor, and the amount that your Renovation loan package covers will be based on the contractor’s bids.
• How much time do you have? A HomeStyle Renovation loan requires that all renovations financed under it be completed within 6 months of the date of loan consummation. Of course, you’ll also have to make your full monthly mortgage payment during the intervening months, as well.
HomeStyle loans are great solutions for home buyers who’re looking to roll up their sleeves and make improvements, or those who want to refinance in order to help pay for repairs or renovations. HomeStyle loans often have low closing costs and lower interest rates than other mortgage options on the market, and provide a cost-effective way to repair or improve your home.
Whether you’re buying your first home or your fiftieth, and whether you’re taking out a mortgage or refinancing, finding the right loan for your needs is a big decision. That’s why, in addition to being your low interest refinance lender in Kansas City, First Fidelis, LLC is committed to providing you with the best loans available, and helping you to get to know your options, so that you can make the choice that’s right for you. If you’re interested in taking advantage of a Fannie Mae HomeStyle Renovation loan—or would just like to learn more about your loan options—contact First Fidelis today!