Whether you are planning to refurbish your house or want to purchase a new one, opting for Fannie Mae Homestyle loan is your best bet. This is because the loan option allows you to include costs related to purchasing and renovating a residential property. Best of all? Lately, experts have updated the loan which is why most of the buyers prefer opting for it. According to the experts, Fannie Mae ranks are a feasible alternative to other traditional loan options. All you have to do is meet the eligibility criteria, fill in the application, get in touch with a trusted lender, and you are good to go.
The loan option provides an umpteen number of perks to the home buyer. Are you wondering what they are? Get reading because in this guide we have explained everything.
Perks of Fannie Mae homestyle loan
- Smaller down payment: Some of the home buyers are not able to afford a higher down payment. This is why they wait until they have sufficient funds or go with traditional loan options. However, if you check out Fannie Mae mortgage rates in Chicago, you will notice a huge difference. This loan option asks for a smaller down payment which is why selecting it is the safest bet. Traditional loan options ask for a higher down payment. For example, if the house you want to purchase is for $100,000, the down payment itself is $5,000. But with Fannie Mae, you get to borrow up to ninety seven percent of the purchase rate and estimated refurbishing costs. In simple words, this means that if the property you want to purchase is for $200,000 and the renovation will happen in an extra amount of $100,000, you can get it financed till $291,000.
- Manufactured residential properties are also eligible: As a home buyer, you now have the opportunity to buy and refurbish a residential property that is manufactured one through a homestyle loan program. Nevertheless, the changes you can make are limited. If you consider the guidelines of Fannie Mae, opting for non-structural changes, including changing the kitchen, bathroom, heating and cooling systems make sense. You cannot use the homestyle loan program to alter the whole structure of a residential property that is already manufactured. Changes like building a dumpyard, shed, and adding a sun porch is not allowed under the Fannie Mae homestyle loan program.
These are the perks of Fannie Mae homestyle loan program. If the program fulfils your expectations and your budget is also not getting affected, opt for it now. Find a reliable lender and discuss your requirements with him first. Gather all the information about the loan program, know the criteria, and get started.
The Ending Thoughts
Fannie Mae homestyle loan option will work magic for you whether you are purchasing a house or getting it renovated. Therefore, go for the program and get the pending thing done. You won’t get a better loan program, especially if you have a fixed budget and want to make small down payments.
To know more about the programs, get in touch with the professionals at Preferred Rate. We will let you find out the most suitable and affordable loan option for you.