Chris Graves, Certified Mortgage Advisor

Providing Mortgage Services in MA, NH, ME, RI and FL

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MA HomeStyle Home Repair Mortgages Overview

FNMA HomeStyle mortgages enable home buyers to borrow money for the cost of renovation by rolling it into the mortgage. It can be used for a new home or to refinance a current mortgage. It may encompass small or large tasks and therefore is a helpful resource for properties requiring renovation. This MA HomeStyle home repair mortgages overview provides important information.

Types Of Properties Suitable For FNMA HomeStyle Mortgages

FNMA HomeStyle mortgages may be used for different types of property types, although notable restrictions do apply. Single family homes usually qualify. Condos must be approved by FNMA and rehab limited to the interior of the unit. Multi-family homes are allowed but the number of units must not change as the result of the rehab. Types of properties that do not qualify are mixed use real estate, cooperatives, new construction, and multi-family properties that do not intend to be utilized as a primary residence.

Loan Restrictions

There are two different value figures. The first is the “as-completed” value of the home determined by a independent appraisal. The second is the purchase amount of the home combined with the renovation cost. The lower of these two is used to identify the loan-to-value (LTV) figure. This determines the down payment and amount of the loan.

The allowed LTV is set using the property classification. For real estate that is occupied as a primary home, 95% is permitted for single family properties, 85% for 2-unit buildings, and 75% for 3-4 unit multi-families. Second homes are restricted to 90% and single family investment homes 85%. Cash out is not authorized.

How Home Repairs Are Handled

Home repair estimates must be examined for loan approval. All estimates must have precise details on the work, labor and material charges. Money for the repairs are held in an escrow account at settlement and disbursed as projects are finished. Specific documentation must be filled out by each contractor. Borrowers may not obtain pay for repairs that are self-completed. All home repairs must be done 6 months from closing.

MA HomeStyle Home Repair Mortgages Overview

This MA HomeStyle home repair mortgages overview addresses only a few of the most popular questions about FNMA HomeStyle mortgages. More conditions and criteria apply to program processing and approval. All information is also subject to change without notice. Ask a loan officer for specific facts and to determine whether it matches your needs.

Chris Graves's avatar

Chris Graves

I grew up in Massachusetts, spent the majority of my young adult life in Boston, and own a home in Windham NH. I have owned properties in MA and NH. I specialize in mortgage lending in Massachusetts and New Hampshire and my company does have the ability to lend in other states. I graduated from the University of Massachusetts in Amherst Massachusetts in 2002. I have a Bachelor’s in Science. In addition to managing a team of loan officers my personal loan production is always in the top of the entire of company. I have personally been in the mortgage business for over 13 years. I pride myself with taking my clients from application to close in the smoothest and quickest way possible, while keeping them well informed during the entire process. I originate my own loans from start to finish and work hand in hand with my loan processors & underwriters to make sure I am updated to the minute with all of my files. I stay up to date with lending guidelines and speak with underwriters on a daily basis to ensure I am aware of all of the lending guidelines in place.