Fannie Mae HomeStyle Loans in Clinton

The Tennessee Fannie Mae HomeStyle program is intended for homebuyers who are interested in purchasing a home in need of moderate renovation or simply for homeowners who already own a Fannie Mae-approved home and would like to have it undergo renovations may try and qualify for additional funds through this program.

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Clinton HomeStyle Loan Requirements

The HomeStyle loan program through Fannie Mae has many advantages for eligible borrowers, such as:

• Streamline, less paperwork
• 2-in-1 single loan transaction.
• Lower interest rates than the standard home improvement loan.
• Flexible mortgage term options with 15 or 30 years.
• Does not require mortgage insurance (MI) if LTV is 80% or below.
• LTV is taken into consideration after renovation is completed (great for underwater homeowners).

To find out more information on how to qualify for a Fannie Mae HomeStyle Loan, feel free to give us a call at (844) 204-2035 and one of our Fannie Mae approved mortgage professionals will be willing to answer any questions you may have.

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Benefits Of Fannie Mae HomeStyle Loan

With the Fannie Mae HomeStyle loan, there are many benefits that a homebuyer can reap such as:

• Qualifying for the loan based on the as-completed value of the property.
• Many borrowers are able to take advantage of low first mortgage interest rates and are able to do numerous types of improvements or repairs in their desired home of purchase.
• Finance mortgage payments up to 6 months to cover any non-occupancy costs during construction.
• With the lender involved in the construction oversight and monitoring, it can provide added value to borrowers.

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Eligible Fannie Mae Homestyle Properties

• 1-4 unit newly built or constructed (attached/detached).
• 1-unit manufactured homes.
• 1-4 unit existing site-built home (attached/detached).
• Approved (Fannie Mae-warrantable) Condominiums, Cooperative, and PUD units.

The Fannie Mae HomeStyle loan is available for purchase of primary residence, a second home, or investment property.

*Important:Manufactured homes must be newly purchased and never previously attached to a foundation, and must meet all requirements of Fannie Mae HomeStyle.

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Down Payment Requirement

Down payment for Fannie Mae’s HomeStyle program is as low as 3% , but is usually 20% required if you choose to not have mortgage insurance.

Loan-to-Value (LTV) Requirement

The LTV required for a HomeStyle loan is up to 95% for primary residences, up to 90% for second home and up to 75% for investment properties.

Debt-to-Income (DTI) Ratio Requirement

Typically, for a Fannie Mae HomeStyle loan, a borrower must not exceed 45% DTI.

Minimum Credit Score

With a LTV greater than 80%, a 700 minimum credit score is required. If the LTV is less than or equal to 80%, a credit score of 680 minimum is required primary residences and second homes.

Please keep in mind that all renovation work must be completed by a licensed contractor, although Fannie Mae does allow for a “Do It Yourself” (DIY) renovation option as long as the buyer receives lender approval for this option and a 10% contingency reserve of the renovation amount is required as well.

A contingency reserve is an amount of money established from a retained earnings to allow for unforeseen losses or damages during the renovation process.