Build the dream house you have always wanted! It may be easier than you think!
The dream of building a home from the ground up exists for many St. Louis residents, but to actually make that happen can be very difficult. An alternative is to buy a home in need of repairs and renovate it into the house of your dreams. The Fannie Mae HomeStyle Renovation Loan is the home mortgage that can make that happen.
Finding Money to Renovate an Older Home
The St. Louis housing market is abundant with homes that are sitting on nice sized lots in desirable areas of the city. Unfortunately, they may go unnoticed by home buyers who assume that a mortgage and the money to fix them up is unattainable. What many do not realize is that the majority of those homes are being offered at a discounted rate and that Fannie Mae will help fund the renovations.
The unique HomeStyle Renovation Loan allows you to make a purchase based on what the value of the home will be after your renovations are made. You make a 5% down payment on this assumed value and get the funding you need not only to buy the property, but to bring it up to that standard.
Qualified Renovations and Repairs
The Fannie Mae HomeStyle Renovation Loan has very few limitations on the type of renovation or repair that the money can be used for. The biggest stipulation is that the work done must be a permanent addition to the home. This includes a new roof, HVAC system, new floors, or anything else that brings value to the property. It even allows for what many would consider luxury items. The cost of swimming pools, upgraded patios, and even a hot tub can be factored into the loan allowing you to create the house you have always dreamed of.
Taking into consideration that you may not be able to live inside of the home until repairs are complete, Fannie Mae will even include up to six months worth of your monthly mortgage payments into the loan package so that your payments are covered while the renovations are underway. This allows you the time to make those repairs and settle your existing home loan. You can live in and pay for your existing home while your new mortgage is paying for the repairs and mortgage payments of the new one.
Using the HomeStyle Loan to Refinance
For those who are in love with their existing home but know it needs some work are also able to apply for the Fannie Mae HomeStyle Renovation Loan as a refinance. This can help you update your current home and bring its value closer to what you know it to be worth. Add energy efficient features like solar skylights or new appliances, or make additions to accommodate a growing family. The choices are endless.
Unlike home equity loans or lines of credit, there is no second loan or second interest rate to consider with the HomeStyle Renovation Loan. All of your needs are consolidated into one convenient loan package, making it a snap to convert an existing home into the one of your dreams. If there’s a house on your list that would be perfect if not for a few modifications, don’t dismiss it. Instead, apply for a HomeStyle Renovation Loan and make that house the home you want.