Idaho FNMA HomeStyle Renovation Home Loan
The Home Style Renovation mortgage provides a convenient and flexible way for borrowers considering home improvements to make repairs and renovations with a first mortgage, rather than a second mortgage, home equity line of credit, or other more costly methods of financing
- Flexible Purchase or refinance option for any renovation project such as design updates or improvements, and even renovating accessory units like in-law suites or basement apartments
- Affordable Your borrowers can take advantage of competitive rates, which may be lower than a home equity line of credit (HELOC) or a personal loan.
Frequently Asked Questions About The Idaho HomeStyle Renovation Home Loan
Can lenders use the Idaho HomeStyle Renovation financing on a manufactured home?
Yes, manufactured housing is eligible for HomeStyle Renovation financing, up to the lesser of 50% of the as-completed value, or $50,000. The manufactured home must meet the applicable Selling Guide requirements in Section B2-3-02, Special Property Eligibility and Underwriting Considerations: FactoryBuilt Housing.
Can an accessory unit be detached from the primary dwelling?
Yes, an accessory unit may be detached from the primary dwelling. All improvements related to accessory units must be in compliance with local and state codes and statutes. They also must meet the applicable Selling Guide requirements for accessory units in Section B4-1.3-05, Improvements Section of the Appraisal Report.
Can landscaping costs be covered?
Yes, provided that the improvements are permanently affixed to the property.
Is an energy report required when using HomeStyle Renovation for energy-related improvements?
It depends on how the transaction is structured as well as the types of energy improvements completed. If energy-related improvements are financed through the HomeStyle Renovation product without using HomeStyle Energy, an energy report is not required. In that case, the lender will not deliver the loan with Special Feature Code 375 and will not receive the $500 loan-level price adjustment (LLPA) credit. When combining HomeStyle Renovation with HomeStyle Energy, lenders will receive the $500 LLPA credit if Special Feature Code 375 is delivered. The transaction will also be subject to the requirements under HomeStyle Energy when this option is used. Some improvements under HomeStyle Energy require the borrower to obtain an energy report while others do not. For additional information about when energy reports are required for HomeStyle Energy loans, see Selling Guide section B5-3.3-01, HomeStyle Energy for Energy Improvements on Existing Properties.
Below is a comparison of the difference between the Homestyle Renovation Home Loan and an Idaho FHA 203k Rehab Loan
*For manufactured housing, the eligible renovation funds capped at the lesser of $50,000 or 50% of the “as-completed” appraised value.
If you have any questions about the Idaho Homestyle Renovation Home Loan feel free to contact us at https://dmgloans.com and we will help you in any way that we can.