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 Mae’s Homestyle Loan is the best option for most borrowers, as they will avoid FHA MI and can utilize this product for both purchases and refinances. Below is a summary of Fannie’s Homestyle Loan.
Conventional Financing: Fannie’s Homestyle Loan is a Conventional loan which allows borrowers to avoid costly FHA Mortgage Insurance. There is no MI if the loan-to-value ratio is below 80%.
Based on Future Value: Fannie will allow financing up to 95% of the future value of the home (after improvements). An appraiser will use the plans for any improvements to appraise the home. This will likely allow the borrower to obtain enough money to cover the cost of improvements.
Types of Repairs Allowed: Fannie allows for both structural and non-structural repairs. A borrower can use a Homestyle Loan for pools, building additions, mold/lead paint removal, and foundation work.
Loan Size: Fannie’s Homestyle Loan is available for high-balance purchases and refinances.
Maximum Repair Amount: A borrower can use up to 50% of the future value of the property for repairs.
For any Outbuildings or Rebuilding projects, borrowers can take advantage of our 203k Construction Loan products as well. Please call us for details.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646