Fannie Mae HomeStyle Renovation Loan

[Justin Peters]

Does anyone in the BP Community have any input on the Fannie Mae HomeStyle Renovation Loan? 

After doing some brief review, it seems like an ideal loan for any buy/fix/sell investors. 

Any feedback would be greatly appreciated! 

Happy Holidays!

Justin Peters

Real Estate Consultant 

[Albert Bui]

Its not the ARV that cannot be over 50%, its the amount "of repairs," that cannot be over 50% of the ARV meaning if you buy a home at $200,000 with an ARV of $350,000 then your repairs cannot be more than $175,000 but I doubt many buyers/investors are doing or want to do that much of rehab/repairs anyway.

rehab costs  of up to $175k in the above example above can include:

- total rehab project cost

- contingency reserve

- inspections

- up to 6 months PITI (only if uninhabitable during renovation, owner occupied only, requires FNMA consultant approval)

- discount points

No tear downs, no new construction, no personal property in the above rehab figure, no construction of accessory dwelling units or guest suites, or alteration for bus or comm use.