HomeStyle* Renovation Mortgage Loan - Boston, Hanover, MA

A HomeStyle® Renovation loan can help you realize your ideal home. This product rolls two loans into one – so you can repair, improve or create the house you desire.

What are the advantages of a HomeStyle?

During a home purchase or refinance, you might face the need for repair or the desire to remodel. In the past, a second home loan or other lines of credit would cover these looming costs. With a HomeStyle Renovation loan (with 5 percent down), the lender gives you a better option – rolling the money to finance (or refinance) the house and complete repairs into a single home loan. This method can free you from certain fees and processing costs. When adding up the advantages, the answer usually equals one:

• One loan amount
• One interest rate
• One monthly payment
• One "as-completed" value
• One round of closing costs

Old Houses, New Features

HomeStyle funding can be a great fit for people that are buying or refinancing older properties in longstanding neighborhoods. Sometimes these lovely living spaces come with one or two needs – having a contractor repair a roof leak or a kitchen in need of modernization. With these funds, customers with vision can finance their ideas for a better household.

There are many ways that customers can benefit from these opportunities. A longtime owner might pay for a bedroom remodeling as he refinances. A bargain hunter or investor might finance the restoration of a structure to a higher standard. Wherever a homeowner can imagine something better, a HomeStyle is a possibility to make it happen.

HomeStyle fixed rate and adjustable rate opportunities are available to fix or upgrade the structure of your home. Others focus on cosmetic upgrades, such as remodeling. The areas of improvement must be attached to the structure and add value. Possible renovations include:

• Interior and exterior renovations
• Fences
• Decks
• Landscaping
• In-ground pools

Not every property or customer can join this program. There are eligibility rules based on size and other factors. To learn more about our renovation products, please contact a PrimeLending home loan expert near you and ask how you might be able to use a HomeStyle loan.

*Homestyle is a registered trademark of Fannie Mae.

Renovation Cost Limits

The cost of renovations is limited to 75% of the “as-completed value” of the property or Sales Price + Reno Total, whichever is lower.

• No exceptions. This is a Fannie Mae requirement. These limits include the 10% contingency reserve IF FINANCED and all fees/costs listed below in the Fees section. Note: If the cost of renovations exceeds the maximum, the Borrower is NOT allowed to pay the difference at closing from their own funds. However, Contingency funds CAN be paid out of pocket. Any borrower funded contingency that is not used to complete the project will be refunded back to the borrower.

Projects that include Structural Repairs or Adding Square Footage MAY REQUIRE a Structural Engineers Report.

• Structural Engineers Report will be REQUIRED when:
  • Adding a new addition on top of existing house (building UP)
  • Contractor's bid notes that structural report is needed
  • Removing a load bearing wall
  • Major foundation/Basement repairs
  • Underwriter/Appraiser requires it
• Structural Engineers Report is NO LONGER required when:
  • Adding a new addition off the side or back of dwelling, unless a load bearing wall is impacted
  • Building a new garage or outbuilding, whether attached or detached to the dwelling

Minor foundation/Basement repairs (such as filling cracks, finishing basements, adding support)