Applying for a home loan feels like taking one of the biggest risks of life because of the high amount and uncertainties about payments. As first-time applicants, most of us are not even aware of home loan types. On the basis of your precise need, our agent can offer different types of home loans. We are enlisting all of them below for your convenience:-
- Land purchase loan
- Home purchase loan
- House construction loan
- House expansion loan
- Home conversion loan
- Home renovation/improvement loan
- Balance transfer home loan
- Bridged home loan
- Stamp duty loan
- NRI home loan
Moreover, the terms for first-time home buyers also differ from the second-time home buyers. Particularly for home improvement, our loan consultant can guide you with the technical details of the Fannie Mae Homestyle loan. Stay connected with the following points to enhance your knowledge.
Understanding Fannie Mae HomeStyle Loan
Fannie Mae HomeStyle is a home improvement loan type specifically designed to manage residence renovation at the lowest possible interest rate. Instead of private lenders, federal authorities sponsor these loans which can be in the form of refinancing of a current mortgage or purchase mortgage. Do you want to know whether you are eligible for this loan or not? Have a clarification from the eligible candidates’ criteria:-
- Individual home buyer
- Real estate investor
- Local federal agencies
Moreover, these loans are approvable for particular types of properties only. We have made a list for your convenience below:-
- One-unit investment home
- One-unit second home
- One-unit manufactured home
- Single-family detached home
- Condo unit/Co-op unit
- Duplex, triplex or quadruplex
Renovations Covered in Fannie Mae Homestyle Loan
If you are planning to apply for a home loan sponsored by Fannie Mae Homestyle, make sure it will cover your expectations of renovation. There are not too many restrictions for applicants but you have to know their basic coverages. Read the list below to know coverages:-
- New landscaping
- New floor construction
- A second home on the same property
- Kitchen and bathroom remodeling
- Equipment upgrade i.e. ventilation, heating or AC
Qualifications to Apply
- Credit Score
Just like other loans approval, this renovation loan origination is also influenced by the credit score of an applicant. Check your credit score, determine whether it is positive, negative or neutral. On the basis of your current score, put your efforts to improve the image. A higher credit score will help you in approving loans faster with minimum possible interest rate.
- Existing Debt
Your existing debts also play a key role in deciding the loan amount and interest rate. Experts at Preferred Mortgage Solutions examine your account thoroughly to determine the payback potential.
- Authorized technicians assistance
Remember it clearly that Fannie Mae Homestyle Loan is not meant for your DIY projects. While presenting the proposal of your project, approved contractors and architects should be mentioned clearly.
While applying for this type of loan, keep yourself informed with exceptions too. Building a new home on a separate property, movable storage or electricity renovation or tearing down a house is not covered. Get your files ready carefully!