Fannie Mae HomeStyle Eligibility Requirement

Rebecca Yu Uncategorized

Loan-to-value (LTV) limits and eligible property

The max LTV for Fannie HomeStyle will depend on the  property type:

97% for a one-unit, principal residence with a fixed-rate mortgage.

85% for two-unit principal residences.

75% for three- and four-unit principal residences.

90% for one-unit second homes.

85% for one-unit investment

Credit and Income qualifications

  • minimum credit score of 620 and max debt to income ratio of 50.000.
  • the contractor will need to sign a “construction contract”  and will need to be approved by the lender.

Renovation specifications

  • All plans and specifications “must be prepared by a registered, licensed or certified general contractor, renovation consultant, or architect.”
  • HomeStyle mortgage requires a contingency reserve of 10% to 15%
  • A project inspector is required if the project exceeds $50,000 or includes structural repairs. 
  • If the property is not habitable at the time of closing, Fannie allows the borrower to finance up to six months of mortgage payments (principal, interest, tax, and insurance)