The HomeStyle mortgage is Fannie Mae’s version of an FHA 203k rehab mortgage. Fannie Mae HomeStyle allows home buyers to finance improvements and/or repairs with their purchase or with a refinance. This allows home owners to have just one mortgage payment while enjoying upgrades made to their home.
Just like a 203k loan, HomeStyle requires that you work with a consultant to determine what repairs will be required and help advise on improvements. If you’re buying a home and using HomeStyle for your financing, the consultant’s report may also serve as your home inspector.
One advantage of the HomeStyle Mortgage over an FHA 203k is the mortgage insurance. Since HomeStyle is a conventional program, the mortgage insurance will eventually drop off the payment. Based on current FHA guidelines, FHA mortgage insurance is essentially on the life of the loan (unless you refinance).
If you have a home that needs a little TLC, you may want to compare the HomeStyle Mortgage to an FHA 203k. If that home is anywhere in Washington State, I’m happy to help you!