👀🏠How to REHAB HOME with $0 REHAB FUNDS!

📜Here you will learn how YOU CAN REHAB A HOME with $0 ZERO REHAB FUNDS out of pocket!

👉🏽”If you’re looking to buy a property that needs renovating without having to pay any money upfront in renovation costs stay tuned! A renovation loan is designed to allow you to combine a home loan to buy or refinance but add the renovation costs to your loan. What’s great about this loan is that you can do this using the “projected value” of the home after renovation; which is why it’s possible to finance the renovation costs and not worry about financing over 100% of market value. You can put down as little as 3% of purchase price and rehab; which for a total purchase of $500K that’s only $15K.

💵HOW MUCH Do I need to put DOWN?

Josh’s Answer 👉🏽 “You can put down as little as 3% of that “After Renovated Value” so for example if you purchased a property @ $450K and needed $50K for rehab where total is $500K you could put down as little as $15K. “Note: subject to qualification, inquire for more details”.

💵What is the MAX RENOVATION AMOUNT?

Josh’s Answer 👉🏽 “Technically you likely won’t struggle to maximize this; however the max is capped at 75% of the “As Completed Value” — NOT to be mistaken for your max loan; which is 97% of “As Completed Value”.

🏚️Does Property NEED to be LIVABLE?

Josh’s Answer 👉🏽 “No, Fannie Mae does not require the property to be habitable at the time of closing. If the home is not habitable, the borrower may finance up to six months of principal, interest, tax, and insurance payments to cover these costs while the home is uninhabitable. Note, you cannot buy a property with intention to tear it down.”

👷🏽Can I DO THE REHAB MYSELF or do I need a Licensed Contractor?

Josh’s Answer 👉🏽 “Not officially NO, however you can hire multiple licensed individuals (ie: Home Depot to install windows and HVAC) but they would be the recipient of said draw/funds to pay those corresponding invoices. You can also hire your own contractor who would need be vetted to ensure they meet said qualifications set forth by program.” (Inquire for further information/detail)

⌛How MUCH TIME do I have to complete the project?

Josh’s Answer 👉🏽 “You have 15 months from start of loan to completion of work. This means that if there were permits from your local authority (ie: county/city building) those would need to be final/complete in that time frame and answer to your next question is YES, you can see about extending this timeframe should there be delays/snags along the way but need to be reviewed and approved on a case by case basis.”

🤑Will I need to REFINANCE AND PAY FEES AGAIN at time of rehab completion?

Josh’s Answer 👉🏽 “No, this loan is designed to be a true “ONE TIME CLOSE”; which means that you acquire the loan, rate and terms of loan at time of closing/funding. This way you are protected against market deterioration if rates were to rise during the rehab timeframe. Should rates improve from when you funded on your loan and time of rehab completion then you can consider acquiring a new lower rate with better terms — subject to review/cost potentially.”

ℹ️ Helpful links to reference for more info 🔗

👉🏽HomeStyle Renovation — Fannie Mae Product 🔗 https://singlefamily.fanniemae.com/learning-center/originating-and-underwriting/faqs-homestyle-renovation

👉🏽Homeownership Education and Housing Counseling 🔗 https://singlefamily.fanniemae.com/media/16596/display
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Josh Mottashed
NMLS#: 254939
📞 (916) 798-1252
📧 (mailto:josh@mottashedlendinggroup.com)

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