Posts Tagged ‘Fannie Mae’
- Reduces the FHA condo owner occupancy ratio to 35%
- Gives FHA the ability to substantially reduce burdens and streamline the condo re-certification process
- Provides more flexibility for mixed use buildings.
- Emulates the Federal Housing Finance Agency’s (FHFA) rules regarding private transfer fees for FHA condo lending.
- Allows for approved lenders to directly endorse Rural Housing Service (RHS) loans and car loans. You must ask yourself first, What Is an Unsecured Loan?
- Will streamline programs for federally-assisted housing programs
A Renovation loan can be used to purchase a home or refinance an existing home. A HomeStyle Renovation Loan from Signet can be used to improve an investment property too! A renovation loan based on the improved value of your home making it a valuable alternative to a construction loan. You can arrange for funds over and above the purchase price of your new home to remodel, make repairs or add a room! A refinance will pay off your existing loan, and provide additional funds for a wide range of improvements – let your imagination go! A renovation loan is a perfect way to fix up a property, or add that extra bedroom you need for your growing family.
There are several basic types of Renovation Loans. HomeStyle loan from Fannie Mae is my favorite, as it allows loan to value to 95%, does not have up front mortgage insurance and is underwritten to standard Fannie Mae guidelines. The loan is based on the improved value of your home AFTER completion – so you will have the resources to make it your dream home! FHA 203(k) loans come in two “flavors” …
- Streamline 203k – Renovation costs generally limited to $35,000. The work can be done by the homeowner or contractors. Typical renovations include painting, carpet and replacement of appliances. This loan does not require a HUD counselor, and is very close to the cost of a normal FHA loan.
- Full 203k – Renovation costs are only limited by the FHA loan limits for the county. The renovations are generally more extensive so require the assistance of a general contractor. An FHA Consultant is involved to ensure the project proceeds according to plans. Remember, the loan is based on the improved value of your home AFTER completion – so you will have the budget to renovate your dream home!
Energy Improvements – Replacement of a furnace or air conditioner, or adding double pane windows or insulation are examples of renovations that can be included. An energy audit must be completed to demonstrate the benefit of the improvements. These costs can be over and above the streamline 203k $35,000 limit.
- Bankruptcy or Foreclosure seasoning requirements have been eliminated
- Up to 60% debt-to-income ratios are now accepted on all HARP refinances, thanks to the Rhinosure programs that are being offered
- Promissory Note date now used to determine HARP eligibility, prior to 5/31/09. Until recently it was based on when Fannie or Freddie purchased the loan.
- 0x30 Mortgage rating in last 6 months is required – previously it was no late payments for 12 months!
- Loans that currently have mortgage insurance are allowed!
- Unlimited LTV/CLTV on HARP owner occupied homes, 2nd homes and Investment properties