This type of mortgage has so many amazing benefits due to it’s incredible flexibility in regards to financing. You can use it for your townhome, condo, duplex, manufactured home, single family home, or investment home. By utilizing this financing option, you can grow almost immediate equity in to your property. 

Some of the other amazing benefits include combining your renovation funds into your home loan for only one monthly payment. This can be very convenient, especially if you have an incredible rate when compared to personal loans, home equity loans, or HELOCs. If you choose, you can roll other costs into your loan as well such as closing costs, permits, living costs to cover a rental during the renovation or improvements are being done, labor costs, and license fees.

How do you qualify for a homestyle renovation loan? The first significant qualification is credit score. A minimum credit score of 620 is needed to qualify. This applies to a single unit home and a debt to income ratio in the range of 36 percent or less. A 25% down payment would also be required with a score in this range as well, and a minimum of 2 months of cash reserves. With a score of 680 or higher, your rates would significantly improve and your down payment would not have to be as high. 

Another qualifying factor is the work being done must be done by Fannie Mae approved contractors. These contractors and architects must provide proper documentation which will aid in the loan approval process. They will need to provide a timeline for all of the projects that need to be completed and submit the plans to the lender. Once the appraiser has done all of their inspections, the contractors can then get paid for completion.

If you are looking to add value to your current home and property or are ready to invest or upgrad additional property, call Firehouse Mortgage today and speak with our highly qualified loan officers. Let’s get you started on building equity today!