Investors Dream - Fannie Mae Homestyle Renovation Loan Program

Are you an investor that is looking to buy a foreclosure in the Phoenix area? I've seen my share of foreclosed properties in the Phoenix area and surrounding cities and towns! They come in all shapes, sizes and conditions!

I've sold foreclosures to investors from Canadian investors, Washington state, Arizona investors and around the country! It can be a great experience if you are willing to wait it out, place many offers and be willing do some handyman work or have some licensed contractor do it for you!

There is no question that in Arizona, the second largest foreclosure numbers in the real estate market there is a home waiting for you to stake your claim.

Even if you are beginning to trek that path and looking to become a small investor of a few properties in 2009, then now is a great time to take on the investor dream!

If you are paying cash, fantastic! If you are looking to finance, then perhaps it's your lucky day! There is a new Fannie Mae loan program available for those looking to purchase a Fannie Mae foreclosed property that needs renovation! 

It works like this:

Fannie Mae has a great loan program designed just for this situation that is a close cousin to the Fannie Mae HomePath mortgage program but designed just for investors.

It is called the Fannie Mae HomeStyle Renovation Mortgage program.

The HomeStyle Renovation mortgage program allows borrowers to combine the cost of the home with the costs for renovation or remodeling.

At closing, all funds for renovation will be escrowed in an interest-bearing account. After all renovation work is complete, any remaining funds in teh escrow account will be used to pay down the principal balance of the mortgage.

Fannie Mae HomeStyle Renovation Mortgage Highlights:

• Up to 95% LTV
• Renovation funds escrowed in an interest bearing account
• Soft costs (architectural services, engineering, permit fees, etc.) may be financed
• Loans are underwritten to FNMA guidelines

HomeStyle Renovation Mortgage: More Information

Borrowers can basically do any repairs / renovation to the home that they want as long as the appraisal supports the value, the improvements are common for the area (pools, for example), the repairs can be completed within six months, and the repairs do not exceed 50% of the after imporoved appraised value.

The only types of repair that I would not recommend under the HomeStyle Renovation mortgage program are water damage, mold, and any structural repairs to the foundation and/or load bearing walls. These types of repairs have a tendency to escalate into much larger projects once the builder does the demo and determines what the actual repairs are needed to fix the damage to the property.

Have more questions about the HomeStyle Renovation mortgage? Call Justin McHood with Arizona Mortgage Team or email him at Contact@ArizonaMortgageTeam.com if you are looking to invest in the best place in the west!  Once we get your financing set, call me and I can set you up on a personal website with all foreclosures in the Phoenix area that fit your criteria! My clients love it and they know as soon as the foreclosures hit the Phoenix real estate market!

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Sincerely, Candace Robinson
www.PhoenixHousingBlog.com HomeSmart Real Estate CRobinson@HSmove.com Mobile 480-202-3558 Fax 602-710-2393 Twitter: AzRealEstate FaceBook: Candace Robinson