I am not one to make bold statements, but I am so excited about what this loan can do to help first time homebuyers, buyers that are moving up, or even real estate investors, I want to shout it from the rooftops. But let me get down from the ledge and explain, so you’ll understand why I am so excited.
Prospective homebuyers always seem to have the same complaint. “Every home I look at needs work.” Realtors are just as frustrated trying to sell those homes, and home sellers are not willing to make those repairs, because their sights are set elsewhere; they just want to get out.
So what does a prospective homebuyer do? Banks don’t typically finance more than the mortgage to purchase the home itself. A home equity line or loan will not net the buyer enough money to make the upgrades, because they are based on the current value of the home, not on what it may be worth after the repairs or expansion. And most if not all of what is referred to as the “loan to value” has been used up by the mortgage itself. So it’s sort of a catch 22. A very frustrating one for the buyer, the realtor and the home seller.
Until now…
Enter, The Fannie Mae HomeStyle Mortgage. THE BEST MORTGAGE PROGRAM I HAVE COME ACROSS IN 30 YEARS! I may have mentioned that earlier.
Here is what is so special about HomeStyle.
The Fannie Mae HomeStyle Mortgage allows a prospective homebuyer to purchase a home and add money to fix up or expand all in one mortgage. And that isn’t even the best part!
The best part is that the amount of money borrowed is not based on what the home is worth today, but instead uses “after improved value.” That means if you’re adding a bedroom, a new kitchen, an extra bathroom or anything else, this loan will base the home’s value on what it will be worth after the home is improved!
Think of what that means. If you’re a first time homebuyer, you can borrow up to 97% for purchase and improvements based on what what the home will be worth after the work is done. This also means instant added equity to the home itself, because a home with five bedrooms is worth considerably more than a home with three, and we all know what a new kitchen can do to the value of a home.
Everyone is happy! If you’re a homebuyer, you can now pay for the improvements to a so so home on a great block or school district and turn it into the home of your dreams. If you’re a Realtor, think of all those homes no one wants to touch because it costs too much to fix. If you’re a seller, your listing just got so much more attractive. This loan is also available to investors, and can also be done as a refinance. It is also good for second homes as well.
So now you know what I’m so excited about. If you’re in the market for a new home, check out what all the excitement is about. Many lenders don’t carry this loan, but we do. And I’ll be happy to explain all the details to you.
Together, let’s try and make your dreams come true!
Lester Bleich, New York State Licensed Mortgage Loan Originator 