The HomeSTYLE and the HomePATH Renovation are both Fannie Mae offerings. The HomePATH is available ONLY on Fannie Mae owned foreclosures while the HomeSTYLE is NOT property specific.
HomePath Renovation Mortgage allows a borrower to purchase a property that requires light to moderate renovation. The one loan amount includes both the funds for the purchase and renovation – up to 35% of the as completed value, no more than $35,000.
Benefits to You, the Borrower
- Low down payment and flexible mortgage terms (fixed- rate or adjustable-rate).
- Down payment can be funded by the borrower’s own savings, a gift, a grant, state or local government, or employer.
- Renovation amount based on appraisal “after repair” value.
- No mortgage insurance required
- Available for primary residences, second homes, and investment properties.
- Many condo project requirements are waived in some cases
HomeStyle Renovation Mortgage allows a borrower to purchase a property that involves light to moderate renovation AND also allows for major structural renovations, additions, attic or basement build-outs.
Benefits to You, the Borrower
- Available for major structural renovations or additions
- Allows for purchase of “substantially complete” unfinished BUILDER FORECLOSURES
- Available for owner occupants, second homes or INVESTORS
- No restrictions on type of repair, luxury items allowable
- Higher loan limits than FHA 203K loans in many places
- Not property specific, available on properties not owned by Fannie Mae
