At MortgageDepot, we understand that the perfect home for you might not be in perfect condition. That’s why we offer Fannie Mae’s HomeStyle® Renovation mortgage. This program gives Pennsylvania buyers the flexibility to renovate, rehabilitate or add luxury features to a property with potential.
The Biggest Benefit of a HomeStyle® Loan
The HomeStyle® program allows borrowers to obtain financing to purchase and renovate a property in one comprehensive loan. Before this program, buyers needed separate financing for the property and improvements. At MortgageDepot, we view the HomeStyle® loan as a money-saving strategy because borrowers are only responsible for one set of closing costs.
HomeStyle® Mortgage Features
The benefits of a HomeStyle® mortgage are more than the cost savings of a single closing. If you fall in love with a fixer-upper, here is a list of HomeStyle® mortgage features that could help you turn your dream home into a reality:
Your new home’s appraisal is based on its post-renovation value.
Borrowers can obtain financing for any permanent improvement that adds value, including luxury improvements.
If the borrower cannot occupy the property during renovations, they can finance up to six months of mortgage payments in the loan.
The HomeStyle® mortgage is available with a fixed or adjustable interest rate.
The HomeStyle® mortgage is offered in 15- or 30-year terms.
The borrower can complete a certain percentage of the work themselves.
HomeStyle® Mortgage Eligibility Requirements
In order to qualify for the HomeStyle® program in Pennsylvania, borrowers must:
Be purchasing a one- to four-unit primary residence or one-unit investment property.
Have a credit score of at least 620 and a maximum debt-to-income ratio of 45%.
Plan to complete renovations within six months of closing.
If you’re not sure if you are eligible for the HomeStyle® program, speak to our experienced loan officers for more information.
Finance Your Home Improvement
The HomeStyle® program puts costly home improvements within reach for Pennsylvania buyers. Get in touch with MortgageDepot today to discuss your options for financing your home or investment property!