Have you heard the news? Fannie Mae recently announced improvements to the HomeStyle® program! These improvements make the program even more attractive to borrowers. The HomeStyle® program provides a convenient and flexible way for borrowers considering home improvements to make repairs and renovations with a first mortgage, rather than a second mortgage, home equity line of credit, or other more costly methods of financing.
Some of the program updates include:
- Removed the requirement that the renovation must add value to the property
- Eligible renovation funds have been increased to 75% (was 50%) of "as-completed" appraised value
- Manufactured homes are eligible for non-structural improvements up to a maximum of $50,000
- LTV/CLTV increased to 97% for first-time buyer purchase transactions or refinances of loans owned or securitized by Fannie Mae
- Free-standing accessory units (ADUs) are eligible, providing local zoning requirements allow
- Plaza's Supplier Draw at Closing feature is being increased to $25,000
If you aren't offering this program, now is a great time to consider doing so! The market is ripe with borrowers looking to make home improvements (Mortgage Professional America).
Click here to learn more about the updates, and contact your Account Executive to get started!