Homestyle

Homestyle Renovation

Homestyle is a Fannie Mae product that duplicates the FHA 203k renovation program, but is much better. This product lends additonal money for repairs or improvements, added to the mortgage amount, to be borrowed and completed AFTER the close of escrow allowing the loan to close before the improvements are completed.  A bid for the work is supplied to the lender and then this amount is added to the loan amount and paid for in draws as work is completed after escrow closes.

Diferfences between FHA 203k and Homestyle renovation

Can build addiotnal units on property up to 4 units?

FHA: Yes        Homestyle:  Yes

Can loan on rental propertue and 2nd homes?

FHA: No, only primary residence     Homestyle: Yes

Is Mortage Insurance is required on all loans regardless of laon to value?

FHA:  Yes                  Homestyle:  No, only on loans over 80% Loan to value

Are interest rates the same on both products?

No, Homestyle rates are better.