FNMA HomeStyle Renovation

[Pages:19]FNMA HomeStyle Renovation

Available for Purchase or Refinance

FNMA HomeStyle Loan Program

? Owner occupied ? SFR ? Townhome / PUD ? Condo (must be warrantable) ? 2, 3, and 4 unit multi-family homes

? Second Home ? 1 unit only ? SFR ? Townhome / PUD ? Condo (must be warrantable)

? Investment ? 1 unit only ? SFR ? Townhome / PUD ? Condo (must be warrantable)

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FNMA HomeStyle Loan Program

? HUD consultant write up may be need. List of consultants will be provided by GRI.

? HUD Consultant required for any structural project or cosmetic repairs over $50,000 inclusive of draws, inspections, permits, contingency reserves, title update, and architectural fees.

? Contractor and Consultant Write up along with architectural sketch required to order appraisal and get loan approval (major renovation projects)

? Work must be started in 30 days, no lapse in work for more than 30 days ? Work must be completed within 6 months ? All loans must Pass High Cost Test

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Eligible Property

Eligible properties: ? 1-4 Family ? Condos-FNMA Warrantable

? HOA must provide letter approving renovation project ? Townhomes treated as SFH ? Conversion of multi-unit dwelling decreasing the number of units (zoning

must allow prior to close) ? Conversion of single family dwelling increasing the number of units

(zoning must allow prior to close) ? Mixed Use

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Ineligible Property

Ineligible properties: ? Cooperative units ? Non-Warrantable condos

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Eligible Improvements

? Repairs or improvements must be permanently affixed to the real property and add value to the property

? Total renovation costs cannot exceed 75% of the after-improved value.

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Max Loan Limits: HomeStyle Vs. FHA

As of January 1, 2018

Loan Limits Single Family

FHA $365,700

FNMA Conforming $453,100

Two-Family

$468,150

$580,150

Three-Family

$565,900

$701,250

Four-Family

$703,250

$871,450

*For Cook County and collar counties only. Loan limits can vary by county. **Conforming High Balance loan limits can vary by county.

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FHA 203k

3.5% down SFH, condo, townhome

2 ? 4 unit Owner Occupied 2nd home not allowed

Investor not allowed

Non-owner occupied co-borrower allowed

No max DTI > 50% DTI with 2 comp factors, Requires DU approval

Fannie Mae HomeStyle

SFH, condo, townhome 5% down 2 unit 15% down

3 ? 4 unit 25% down

Second home allowed ? 1 unit only 90% LTV

Investor allowed ? 1 unit only 85% LTV - Conforming & High Balance loan limits

Non-owner occupied co-borrower allowed

50% DTI or DU Approval

UMIP 1.75% Monthly MI .85% typically HUD Minimum Property Standards required

No UMIP

Monthly PMI .50% typically (varies based on LTV and Credit score) No HUD Minimum Property Standards

FHA HUD Consultant required for any structural project or cosmetic repairs over $35,000 inclusive of draws,

inspections, permits, contingency reserves, title update, and architectural fees.

*FHA consultant highly recommended for Limited 203k

HUD Consultant required for any structural project or cosmetic repairs over $50,000 inclusive of draws,

inspections, permits, contingency reserves, title update, and architectural fees.

3-4 unit properties must pass self-sufficiency test

No self-sufficiency test required

Mixed Use Properties allowed

Mixed Use Properties NOT allowed

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