All Forum Posts by: Kevin Mehra

 I get the any reno funds should go towards principal, but the contingency reserve is funded by me not from the lender. 

Hello does anyone have experience with the Homestyle renovation loan?  I'm using this mortgage product to purchase a home and should be closing in a couple weeks but have ran into some unexpected closing cost. The lender is forcing me to put 10% of my renovation cost into a contingency account (which I knew about) and stated any unused money has to be put towards principal of the loan. They also stated I need to prepay for 6 months worth of mortgages payment upfront to be put it in an escrow account. I plan on living in the house during the remodel, as I am only doing cosmetic upgrades to kitchen and bathroom. Can the lender really force I put the unused contingency money towards the principal even though I funded it and force the prepay of 6 months of mortgages?