Through the Federal Housing Administration (FHA), 203(k) rehabilitation loans and the Fannie Mae™ (FNMA) HomeStyle® program, borrowers can purchase or refinance a home and include repair costs in a single mortgage.
This program is intended for extensive rehabilitation and/or improvements.
- Minimum repair amount is $5,000
- Maximum repair amount is contingent on the county limit for the home
- High-balance homes are included
- Luxury items that are not part of the property are excluded
- One general contractor allowed
- 5 draws available
- Maximum 5 inspections and title updates are required
- Maximum amount of time allowed for repairs is six months
Intended for minor rehabilitation and/or improvements that do not require plans, consultants, engineers or architects.
- No minimum repair amounts
- Maximum repair amount is $35,000
- Property must be habitable throughout the renovation process and repairs must not prevent the borrower from occupying the property for more than 15 days
- Additional costs may be financed (inspection fees, permits, origination fee, etc.)
Provides a solution for borrowers, allowing them to obtain financing covering property acquisition and /or rehabilitation.
- Applicable to owner-occupied/investment properties and second homes
- Available for Conforming and High-Balance loan amounts
- Credit/Reserve requirements follow Home Point FNMA guidelines
- Home Point will require Approve/Eligible AUS findings
- Funds for renovation cannot exceed 75% of the estimated 'after improved' value