The ​HomeStyle Renovation (HSR) mortgage from Fannie Mae

[Louis Porter Jr.]

Has anyone tried or used the HomeStyle Renovation (HSR) mortgage (https://www.fanniemae.com/singlefamily/homestyle-renovation)? The loan says the amounts typically fund between 65% – 95% of a property’s purchase price and renovations. This means that typical down payments range from 5% – 35% of the loan amount. Has anyone dealt with these?

[Perry Farella]

Yes, you must have another licensed contractor unless you have a GC license already. If so you cannot profit by charging any labor to yourself. The loan was designed for those who are not themselves doing the work, unlike a Hard Money lender who may just give you cash with no restrictions. All required building permits and any architects plans must be part of the project and the loan will pay for them too.