Are you looking to buy a home to remodel this spring? Homes on the market can require renovations from major repairs to pass newer inspection standards, to updates to bring the home into this decade, to minor touch-ups to meet your style requirements.

It used to be that you could get a home equity loan or line of credit (HELOC), so you could do all the renovations yourself. But, in today’s market, a HELOC can be difficult to obtain. Plus most homeowners just don’t have the time to do the remodeling work themselves, since their jobs, family and other obligations keep them busy. Therefore, it makes more sense to hire a professional to do the work. But you may be wondering, “how do I finance the renovations then?”  

That’s where a Fannie Mae HomeStyle® Renovation Mortgage comes in. With a HomeStyle Renovation loan, you can finance the home purchase with certain home improvements into one mortgage. So you only have one loan, interest rate and monthly payment. And you only have to go to one closing – saving you time and money.

Plus, the great part is, the renovations are tied into your equity. So if you decide to sell your home in the future, the remodeling cost is part of your sales price.

A HomeStyle Renovation Mortgage enables you to get a mortgage and receive funds to cover repairs, remodeling or improvements up to 50% of the “as-completed” appraised value of the property. Other features of the program include:

• No required improvements or restrictions on the types of repairs you can make.
• No minimum dollar amount for repairs.
• Renovations/repairs must be permanently affixed and add value to the property. Improvements can be cosmetic or structural. Construction of out buildings, such as a detached garage or barn, is not allowed.
• Allowable improvements can include appliances, swimming pools, landscaping and more.
• An energy report is required for energy-related improvements, identifying the recommended energy improvements to the property and the estimated cost savings associated with those improvements.
• A 5% minimum down payment is required for primary, single-family homes.
• Renovations must start within 30 days of your loan closing, and they must be completed within 180 days.
• All renovation work must be completed by a licensed contractor.

With a HomeStyle Renovation Mortgage, you can turn a property with potential into the home of your dreams, without breaking the bank. To see if you qualify for a HomeStyle Renovation loan, contact Grandview Lending in Indianapolis at 866-390-4920. We’re approved by Fannie Mae to offer this loan option. And we’d love to help you get that fixer upper so you can make it your own.

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