What is a HomeStyle® Loan?
Do you see potential behind that paneling? Possibilities for that plumbing? If you have the vision to see how great a remodeled home could be, the FannieMae HomeStyle Renovation mortgage might be right for you. A HomeStyle loan could offer lower rates than other means of financing renovations, such as Home Equity Lines of Credit (HELOCs) and second mortgages. Plus, it allows you to make one easy monthly payment and get started on the project with minimal out-of-pocket costs.
The HomeStyle loan is a government-backed mortgage that can be used for purchases or refinances. It’s unique because it lets qualified borrowers roll the cost of design updates, improvements, renovations, or repairs right into the mortgage. The loan amount is based on the as-completed appraised value, which means that it’s possible to realize equity in your home very quickly.
Why would I get a HomeStyle Renovation loan?
In a housing market where inventory is low, buyers are considering properties that might need some work. A HomeStyle loan makes it easier to buy these fixer-uppers so that the mortgage and the repair/remodeling costs are bundled into one payment.
And if you already own a place but feel it no longer meets your needs, the market is also forcing homeowners to take a second look at keeping their existing home. Many people are finding it makes more sense to renovate rather than move. Refinancing with a HomeStyle Renovation loan allows you to get the home you’ve always wanted without changing your address.
How does this work?
Qualified borrowers can use a HomeStyle Renovation loan to purchase or refinance primary residences of 1-4 units, 1-unit second homes, 1-unit investment properties, PUDs or warrantable condominiums. Projects must be completed within 12 months of closing and performed by licensed contractors. Other rules and limitations apply.
It’s important to note that not all lenders are qualified to offer HomeStyle loans, but Guardian Mortgage is. We have years of experience in the origination and servicing of renovation mortgages. Our experienced and helpful loan officers are willing to answer any questions you might have about HomeStyle loans or other products. At Guardian, you can always count on having a real person to talk to every step of the way.