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8/9/2017 |
HLP New Programs: The Home Style Renovation Loan
The focus of this newsletter is to talk about a brand new Home Remodeling Program available through Fannie Mae. In July of this year, HLP Mortgage completed our first one and it was a huge success. This program allows you to have the home of your dreams without handcuffing you financially. Typically, homeowners are forced to use cash saved or acquire home equity loans to tackle home improvement projects. Guidelines are rigid on home equity loans, usually limiting you to 80% loan to value of your home’s current market value. The Home Style Renovation Loan will allow borrowers to take CASH OUT BASED ON 95% OF THE FUTURE VALUE AFTER REMODEL. This gives you more financial flexibility to have the home of your dreams. This program will allow you to do the following renovations:
- Major structural alterations and additions
- Major landscaping and site improvements
- Swimming pool repair or addition
- Remodeling of rooms, including kitchens & bathrooms, finishing your basement and waterproofing
- Permanently affixed built in appliances
- Barbeque pits, outdoor fireplaces
- Built in spa/sauna...
Underwriting Guidelines
On July 29th, 2017 Fannie Mae will be loosening guidelines in the following categories:
- Debt to Income ratio limits will go from 45% to 50%.
- Rate and term refinances will now include student loan debt. (Meaning borrowers can take cash out without getting hit for the risk based pricing and consolidate student loan debt.)
- Self Employment guidelines will be loosening and in some cases only require 1 year tax returns based on automated underwriting findings.
- The automated Value Module will also be updated. This will allow more clients to get appraisal waivers.
If any of these program or guide line changes could benefit you please don’t hesitate to call me at 800-397-4559 or email me tom@hlpmortgage.com
Thank you,