Renovation Loan Specialist in Sante Fe, New Mexico

 
IF you hear yourself - or your client's - saying ...“We love this home, but … “ or “If only it had a ___. “ We have the Renovation Loan product to fix the “buts” and remove the “ifs."

Renovation Loans Solve Problems

  • Helps in Low inventory markets…. Creates infinite possibilities.
  • Allows the buyer to remodel to their own budget, specifications and taste.
  • Allows buyers to take responsibility for repairs of property when sellers will not - or cannot put any money into the property,without delaying the closing of the as-is purchase.

How does it work?

  • Contract is negotiated and written for as-is purchase
  • Bids for repairs are added and loan is done for both as-is purchase and rehab combined
  • Loan LTV is based on the subject to improvements value
  • Loan is documented and closes—Seller and agents are paid.
  • Rehab Contractor gets 5 draws and 6 months to complete the rehab

Which Renovation Loan should I use ?

FHA 203K
  • Allows Lower Credit Scores to 580
  • Allows higher debt to income ratios
  • 3.5% Down—Down-payment assistance and Gift funds allowed
  • Owner Occupied Only
  • Lower rate, but MI is higher, must refinance to cancel MI
  • “Luxury Items” (Pool, Spa , Gazebo. Landscaping that is not required to pass FHA ) are not allowed
  • Rehab budgets under 35K and not involving structural issues are eligible for streamline processing.
  • Rehab budgets from 35K-100K require a certified 203K Consultant to oversee the Contractor. Over 100K requires management approval
Fannie Mae Homestyle
  • Conventional Loan requires 680+ Score
  • Debt ratios more restrictive
  • Owner Occupied, Second Home and Investment property allowed.
  • Owner Occ to 95% with conventional MI can be cancelled without refinancing - 5% down
  • Second Home 10% Down and Investment 25% down
  • “Luxury items” allowed—Rehab budget can be as high as 50% of the after improvement value

For more information on our renovation loan, contact Drew at (505) 204-0683 in Sante Fe, NM today.