If you’re considering a renovation this year, Fannie Mae’s HomeStyle Renovation loan is a great option for turning a house into your dream home. This loan program can fund renovation or rehab projects, energy and smart home updates, major home repairs, as well as landscaping and luxury upgrades.
The HomeStyle Renovation funds could be accessible before projects begin and typically have lower interest rates than a personal loan, credit cards or a home equity line of credit. This loan can be financed into your home purchase or refinance loan. Your proposed project will help influence the loan-to-value ratio, giving you more purchasing power and an opportunity to make changes to your home.
Below are a few tips from Fannie Mae to keep in mind when selecting the HomeStyle Renovation product:
- Make sure you are satisfied with the work your contractor has done before approving transfer of funds from your lender. There are no warranties by your lender, and it is up to you to make sure you are satisfied with the renovation.
- If renovations are taking longer than anticipated, be sure to communicate that with your lender. As the borrower, you are responsible in making the mortgage payments each month.
- If there are funds left over after renovations are completed, the difference may be used to pay off the principal balance or to complete more repairs or improvements.
Communication with both your lender and contractor is key when you are utilizing this loan. Contact a team member if you are interested in learning more about the Fannie Mae HomeStyle Renovation and the options to turn a house into your HGTV dream home.