Located at 3751 Seguin, Dallas Tx, this 3/1/2 on a corner lot has hardwoods throughout.
By Troy Corman, www.t2realestate.com
The Fannie Mae Homestyle Renovation Loan is a great mortgage loan solution for real estate investors. Unlike the FHA 203K loan, Fannie Mae's Homestyle Renovation Loan can be used on second homes, investment homes and it can also be used simultaneously on multiple properties. Properties with up to 4 units qualify, so a duplex, triplex or 4-plex can all be financed and owner occupancy is not required.
This investor loan allows investors to use Fannie Mae financing to purchase properties in bad condition that previously could only be bought with cash, or hard money. The cost of the repairs can be rolled into the mortgage, and the repair costs funds are escrowed, and then dispersed to licensed contractors who complete the work. All contractors must be licensed.
The Homestyle Renovation Loan is much more powerful than the more familiar FHA 203K Loan in that it allows for larger purchases and repair budgets. Also, up to 50% of the ARV, or After Repaired Value, can be used for repairs. So, if a home has an after repaired value of $200,000, then $100,000 in repairs would be eligible for financing.
Minimum down payments are 5% for owner occupants, and 25% for investors. A 10% contingency is required. Unlike the FHA 203K loan, cosmetic repairs and luxury items like swimming pools and hot tubs can also be financed with the Fannie Mae Homestyle Renovation Loan.
The loan can also be used for those looking to add on to their existing home. Contact me at 214.690.9682 for additional details, or if you need a referral to a Fannie Mae Homestyle Renovation Loan mortgage broker.
Troy Corman is the founder of t2 Real Estate LLC, a Dallas real estate firm providing specialized knowledge with a hands-on approach. Specialties include residential real estate brokerage, land and acreage, and commercial real estate services. Contact us today at 214.827.1200 if you need to sell, buy or get your DFW property leased.