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!
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