This loan is a Fannie Mae product, what I think makes it
very special is that it allows investors to participate. It’s also great for
primary and second homes for the owner-occupied borrower.
I hate to start out with limits but at least you know if its a good fit for you or someone you know.
Limits;
1-4 Units can be Primary residence owner occupied
1 Unit Second home owner occupied
1 Unit Investor
On a purchase transaction, the Loan-To-Value(LTV) is based
on two factors and the lesser of the two apply.
- Purchase price plus the cost of the renovation
- The “AS Completed Value”
For the Limited Cash-Out Refinance (LCOR) the LTV is
determined by dividing the original loan amount by the completed appraised
value.
Another cool aspect of this product it allows for subordinate
and community seconds, this is very helpful to first time buyers with down
payment assistant grants from their city or county.
You must use an approved by the lender contractor and if
your financing doesn’t exceed 10% of the “AS Completed Value” you can be a “Do
It yourself worker” but to do this the property must be 1 unit and owner
occupied.
This loan product requires a 10% contingency reserve and the
proceeds for the reno must be placed in an interest-bearing bank account that the
lender has control over. Draws are set up and inspections need to be completed
before each draw is paid out. Once completed the lender will require the
appraiser to provide an Update/Completion Report form 1004D.
For investors doing one home at a time to buy/sell or keep
and rent this is a great option and much cheaper then short term high interest
rate loans from hard money lenders. Although if that is easier for you based on
your documentation or lack of it, I can help you with those too! But you will
be surprised how easy the HomeStyle loans are and the rates are great!
Got
questions, contact me roxy@roxyredenbaugh.com
or simply give me a call, I would love to talk with you. If you are ready to
apply and get pre-approved go to my website Roxy's
Website
Realtors, I encourage you to learn more about the loan
products that will help you sell your listings and help your buyers with
alternatives. This loan product is a valuable tool to do just that. I also have
loans for sellers to help them fix, remodel or update their home in preparation
of listing it. As you know, these modern fixes help sell homes and increase
profits. I offer incentives to sellers that need short term money to make these
improvements.
Ask me about our Certified New Home program and Seller Home Warranty
program that insures the home while it's listed.
No Manufacture Homes (MH) area allowed on the HomeStyle program. But
don’t worried I have lots of options for MH. Stay tuned to my blog for my next
post on MH, you can join/follow my blog from FB over on the right side of my blog,
please do!
I always welcome and encourage your comments and questions.
Thank you for stopping by my blog, enjoy your day!
Roxy Redenbaugh
ACMC Loan Consultant
Certified Mortgage
Coach
Branch Manager
NMLS #269926
No comments:
Post a Comment