Q: What type of renovations can be done with a Homestyle loan?
- A: Any Repair or Improvement that is permanently affixed to the property and adds value
Q: Do we have to use a consultant on a Homestyle loan?
- A: No, if the total cost of the project is less than $35,000 and there are no structural repairs then a consultant is not required
Q: Does the contractor ever get any money up front on a Homestyle project like they would on a 203k limited project?
- A: No, there is never an upfront release of money to the contractor. Funds are only released for work completed and inspected.
Q: Can you do Homestyle financing on a 2-4 unit property?
- A: Yes, but one of the units must be owner-occupied. Multi-family homes are not eligible for Investment or Second Home borrowers.
Q: Can you replace a well and or a septic system with a Homestyle loan?
- A: Yes, as long as there are health or safety issues with the home being addressed then the item is always able to be included in the project.
Q: Can you add a water filtration system to a home that has a private well where the water is not potable.
- A: Yes, this is a health issue and can be addressed by adding this system.
Q: Can you put in an inground swimming pool using a Homestyle Loan?
- A: Yes, this is an improvement that adds value and is permanently affixed to the property
Q: Can I put a 2nd story addition on a home using the Homestyle program?
- A: Yes, It will require plans and specs in order to complete the appraisal. But note that the total cost of the renovation cannot exceed 50% of the home’s after-improved value.
Q: What are the benefits to using the Homestyle Program over the FHA 203k program?
- A: On a HomeStyle program there are no limitations on what is eligible as long as it is permanent and adds value; There are no requirements for having passing tests for water or septic when the home has private utilities or meeting distance requirements. There is no upfront Mortgage Insurance like there is on an FHA loan.