Get HomePath Renovation Mortgage Completion Form - Fannie Mae

The Fannie Mae HomeStyle Loan functions a bit differently than a regular conventional loan. The money is dispersed to pay for the home purchase at closing, but in order to use the funds for renovation, an approved contractor must submit plans to the bank for a “draw” to get paid.

Unused contingency funds, unless they were received directly from the borrower, must be used to reduce the outstanding balance of the renovation loan after all of the renovation work has been completed and the certification of completion has been obtained.

The HomeStyle® Renovation (HSR) Mortgage permits borrowers to include financing for home improvements in a purchase or refinance transaction on existing homes.

Many often wonder: Is there a way to add renovation costs of my new home to a mortgage? The short answer is: Yes. While you'll likely have additional questions, it's best to contact a reputable lender, such as Contour Mortgage for guidance when choosing the right rehab loan for your project.

Renovation or repair requirements: Any type of renovation or repair is eligible, as long as it is permanently affixed to the property and adds value. Renovations should be completed within 12 months from the date that the mortgage loan is delivered.

Appraisal Requirements The appraisal report for a HomeStyle Renovation mortgage must provide an “as completed” appraised value that estimates the value of the property after completion of the renovation work.

For example, a HomeReady HomeStyle Renovation mortgage must be a principal residence transaction, whereas standard HomeStyle Renovation permits second homes and investment properties.

The Fannie Mae HomeStyle loan is a conventional mortgage option for those who want to finance renovation costs at a lower interest rate.