Renovation Mortgage Programs Renovation loans are designed for homebuyers and homeowners that want to rehabilitate, repair, or update a new or currently owned property. Includes funds needed to purchase or refinance, funds required for repairs, and related expenses all in one loan. Low down payment requirements put renovation projects within reach for Borrowers who otherwise could not afford them. Great options for both FHA and Conventional programs. We all know this market is crazy competitive and today I want to offer some insight into a couple of renovation mortgage programs that can help your clients tremendously. YOU CAN HELP YOUR BUYERS COMPETE BETTER IN THIS CRAZY MARKET by letting them know about the benefits of a renovation mortgage Renovation loans open up more choices to homebuyers by expanding their search parameters. Not every home is move-in ready, and many buyers don’t have the extra funds to upgrade or renovate after closing. For buyers, home improvements can improve living conditions, comfort, and value of their new home. BENEFITS OF A RENOVATION MORTGAGE Existing owners can take the next step in creating their dream home through a refinance that combines their improvements. Alex Belan PROGRAM HIGHLIGHTS There are two types of HomeStyle® transactions available: • Up to $50,000 in total renovation costs including the contingency reserve and any additional fees – Designed for non-structural repairs and allows for two draws • Projects > $50,000 in total renovation cost including contingency reserve and any other expenses – Homes requiring significant renovations, such as structural changes/room additions and allows up to five draws PROGRAM ELIGIBILITY • Purchase or No Cash-out Refinance • Primary residence, second home, or investment property • Minimum 620 credit score • Conforming and High Balance up to FNMA loan limits HOMESTYLE® RENOVATION - CONVENTIONAL PROGRAM HIGHLIGHTS The Standard program is for all projects > $35,000 or homes requiring significant renovations, such as structural changes, room additions, or improvements that make the home uninhabitable during construction. • $5,000 minimum - no maximum repair amount up to FHA County Limits, based on MMW calculations. • Requires a HUD Consultant that manages the entire project; working directly with Borrower and Contractor(s). • Up to 5 draws as determined by HUD Consultant – no initial draw is allowed. • Up to 6 months, PITI can be included in the loan amount if the property is uninhabitable during renovations FHA 203(K) STANDARD PROGRAM HIGHLIGHTS The FHA 203(k) Limited program is designed for non- structural repairs up to a maximum of $35,000 in total renovation costs—this includes the contingency reserve and any additional fees. • $5,000–$35,000 repair amount including all other associated costs • The property must be occupied within 15 days of close and be habitable throughout the entire construction project • Self-help (DIY) not allowed, except painting and appliance purchases • Maximum of 2 draws, initial and final FHA 203(K) LIMITED Mortgage Loan Originator NMLS # 1769483 Premier Mortgage Consultants 5435 Jaeger Rd #2, Naples, FL 34109 Call/Text: (352) 320-5350 Email: alex@pmcnow.com Schedule a time to chat and see how I can help your buyers: SCHEDULE HERE If you want to know more or have buyers that could benefit from these programs please feel free to reach out anytime! I am always available for my clients and realtor partners!