Loan Terms & Guidelines
Fannie Mae now offers Construction Loans up to 95% of the future value (after improvements) of a property for low balance loans of $417,000 or less. For high-balance loans (to $625,500), the maximum loan-to-value is 90%.
These are straight construction loans underwritten to Fannie Mae’s “rate and term” guidelines. They allow for almost any type of improvement, including additions.
Eligible Improvements & Limitations
They do not allow for new construction (from the ground up) or for outbuilding (sheds, barns) construction.
But new pools, remodels, new landscaping, new fences, and additions are all allowed.
This is for owner-occupied and 2nd Homes only. It is also for refinances and purchases.
It is called the “Homestyle” program and is not to be confused with “Homepath” (which we also offer).
This is the most flexible construction/improvement financing we have seen in years.
