Fannie Mae Homestyle Renovation Loans are Great for Real Estate Investors.

Pictured, a prime candidate for a Fannie Mae Homestyle Renovation Loan.
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.

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Senators Now Considering A $15,000 Tax Credit For ALL Home Buyers

Senators are now considering increasing the $8,000 home buyer tax credit up to $15,000.

Also, they are considering eliminating previous restrictions so that singles earning over $75K and couples earning over $150K would be eligible under the new plan. And unlike the current $8,000 home buyer tax credit plan, those who have bought a home during the last 3 years would also be eligible.

The new $15,000 home buyer tax credit plan would apply to primary residences and could also include multifamily properties that are bought as primary residences. This would be an awesome incentive and would make home ownership and fixer-uppers more affordable, especially when used in conjunction with the FHA 203K rehab loan program.

The 203K allows home buyers to use a government loan to both buy a home and pay for the rehab, meaning you could only be required to use 3.5% of your own cold, hard cash on a home that requires tens of thousands in rehab.

The $15,000 home buyer tax credit was first floated by Republican law makers a few months ago but was killed by the Democrats. I think the increased home buyer tax credit has a much better chance to pass now since other so called stimulus spending hasn't made much of an impact. Perhaps, they've decided that spending tax payer money to save minnows in California isn't doing much to help the average hard working American trying to support his family.