Renovation loans in the past were limited to FHA 203k loans with their high cost and limitations in the scope of work. Signet Mortgage has the Fannie Mae Renovation loan for homeowners or investors that will allow you to buy (or refinance) a property and include the cost of renovations with a single loan and one down payment!
The Fannie Mae Renovation loan is more flexible than 203(k) and avoids the cost of mandatory mortgage insurance required by the FHA 203(k) loan.
Look at this comparison … same home, same purchase price, same renovation cost. However with Fannie Mae Renovation Loan $112,500 less cash required !!
Do not let that “original” kitchen or the deck falling off the back of the house deter you or your client from your dream home. See through all of that with a Renovation Loan … and make that tired home … a dream home.
This CAN be used to refinance a home and avoid the extra cost and uncertainty of a construction loan.
More excitement …
- Owner occupied can be 1-4 units
- Investment Property allowed (single family only)
- Owner occupied conforming loan can go to 95% (90% for high balance)
- Landscaping and luxury items are allowed
- Second homes allowed
- Renovations must begin within 30 days and be completed within 6 months
- Up to 50% of the as-completed value may be used for renovation costs
- Renovations must add value to the property
- Rates run about 0.3750% higher than a loan without the renovation component
- Maximum loan amounts will vary by county up to $625,500
Contact me today to learn how to make a Fannie Mae Renovation Loan work for you.
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