Want to build an ADU on your garage? Are you having a hard time finding a home that has your dream kitchen? Whether you are buying or refinancing a home, you may want to consider a “rehab” mortgage. At Mortgage Master Service Corporation, we currently have a couple options available.
Fannie Mae’s HomeStyle Renovation Mortgage allows for higher loan to value (low down payment). Loan amounts over 80% loan-to-value will have private mortgage insurance that will eventually drop off the mortgage.
The HomeStyle Renovation Mortgage is also available for investment properties!
FHA 203K Rehab Mortgage also allows for a higher loan to value (low down payment). All FHA mortgages have upfront and monthly mortgage insurance.
FHA mortgages are available for owner occupied homes only.
Swimming pools are now acceptable – although we don’t see many swimming pools in the greater Seattle area. 😉 Landscaping is not allowed as part of the renovation cost.
Both programs, HomeStyle and 203k, accept 1 – 4 plex. If the home is more than one unit, and it’s an FHA transaction, the borrower must occupy one of the units.
The renovations must be complete within six months after closing the mortgage. And any type of renovation must be permanently affixed to the property.
Loan amounts are restricted to the loan limits for the loan product in the county the property is located in. In the greater Seattle/King County area, a single family dwelling has a maximum loan amount of $667,000 for 2018 for both FHA and conforming mortgages.
If you are considering buying a home located anywhere in Washington state, and are toying with doing a rehab mortgage, I highly recommend getting preapproved first. It’s very important to understand the process and know exactly how much mortgage you are approved for. Of course I am more than happy to help you with your mortgage needs! Click here if I can provide you with a mortgage rate quote.
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