Homestyle Mortgage Loans in Dayton and Cincinnati, Ohio
Looking for a program to remodel a home? Check out Fannie Mae Homestyle mortgage loans.
Minimum Down Payment: As low as 3%
Minimum Credit Score: 620
Maximum Loan Amount: $453,100 in Ohio (higher in high cost markets)
Maximum Debt Ratio: 50%
Frequently Asked Questions About Homestyle Mortgage Loans
What is the Homestyle loan program?
Homestyle is a program to allow borrowers to buy a fixer upper, remodel it and bundle the payment all in one loan.
Can I defer payments while remodeling my home?
Yes, if the home is not inhabitable you can defer payments up to 6 months
What are the credit score requirements for the Homestyle loan program?
We need a 620 score or higher for the Fannie Mae Homestyle program. If you need credit help, check out this post about fixing your credit.
How does Fannie Mae view bankruptcy and foreclosure?
You can get a Homestyle mortgage with a bankruptcy or foreclosure on your credit, but typically we recommend you get a 203k mortgage loan instead since that program is much more lenient in these situations.
What are debt ratio limits on Fannie Mae Homestyle mortgage loans?
We can go up to 50% debt ratio with this program
What is the minimum down payment required for a Fannie Mae Homestyle mortgage loan?
It depends. If you are under the income limits or are a first time home buyer, we can go as low as 3% down on this program. If you don't meet these qualifications, it's 5% down. Investors can also purchase under Homestyle with 25% down. This down payment percentage is based on the purchase price plus the renovations.
Can I do my own work on the home?
No. If you have a Homestyle mortgage loan, you need to hire a contractor to do the work for you.
Can the Homestyle mortgage be used for fix and flips?
No. While investors are allowed to get Homestyle financing to renovate single family homes if they have 25% down, the Homestyle mortgage program is designed for long term investors and owner occupants. If you need fix and flip financing, I recommend that you check out Lending One.
I have credit card late payments. Can I still get approved?
It is possible to get approved for Homestyle mortgage financing with installment and credit card lates on your credit report.
How does Fannie view student loans on the Homestyle program?
Fannie Mae has very lenient student loan rules. Income based repayment is acceptable. Click here for more info about buying a home when you have student loans.
What is Desktop Underwriter?
When applying for a Fannie Mae mortgage, the file is submitted to Fannie Mae's approval program called Desktop Underwriter (DU) to make a credit decision. This program takes into account the credit score, the debt ratio and savings (called reserves in the lending industry) to make a yes or no credit decision.
Is there a limit to how much I can borrow on the Homestyle program?
The loan limit is based on Fannie Mae's limit, which is currently $453,100 in all parts of Ohio. Higher cost markets like California have higher loan limits. You can get renovations for up to 75% of the purchase price. So, if you were buying a $100,000 home you could get up to $75,000 in renovations on the Homestyle program.
What are lender overlays with Homestyle mortgage loans?
Overlays are additional credit requirements over and above what Fannie Mae requires. Many lenders have overlays but we do not. We do our underwriting at Fannie Mae's minimum rules.