Financing using HomeStyle Loan

[Lamont B.]

Does anyone have any experience working with the HomeStyle Loan program?  It is a great resource for investors, but my Realtor, Loan Officer (he thought it was only for HomePath homes), and contractor are not familiar.  I've been approved, I'm looking at more properties tomorrow, but I feel like the lack of knowledge may be problematic.  I'm looking for any guidance, positive and negative experience, etc.  Thanks

[Matt Mounier]

@Tom Chen a HomeStyle loan should not take 6 months for an approval.  It may take 6 months for all the renovations to be complete but not to close the loan.  

The approval process takes place the same way a typical buyer would qualify. Your debt to income, assets, and credit score would need to support the loan you are trying to acquire. What is additional, is that there will be several more eyes on the project. You will have a contractor provide bids, the appraiser will go to the property with the bids and confirm an after renovation value (ARV), and the underwriter will sign off (a bit more complicated than this but this is the outline).