JVM Lending now offers all types of construction financing, including: (1) Streamline FHA 203k loans up to $35,000; (2) Standard 203k loans up to FHA loan limits; (3) Fannie Mae Homepath Renovation Loans; and (4) Fannie Mae’s Homestyle Loans.
Fannie’s Homestyle Loan is the best option among the four b/c borrowers avoid FHA MI and it is offered in conjunction with purchases as well as refinances.
Based on Future Value: If an FHA borrower, Joe Smith, owes $380,000 against a $400,000 house, he can use Homestyle financing to not only garner funds for improvements but to also avoid FHA MI.
For example: Assume Joe needs $100,000 for a bedroom and bathroom addition. An appraiser will use the plans for the addition to appraise Joe’s home. If the house’s future value appraises for $150,000 more than the current value (b/c of the addition), the appraisal will come in at $550,000.
Joe can use the $550,000 future value to get a $480,000 loan, equal to 87% of the future value (enough to give him $100,000 for his addition).
Contact us for more information.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646