Actually it never really went out of style in my opinion. It is just that is is a very under utilized mortgage program. Why then is the title of my blog the declaration that the FNMA Homestyle is back in style? It is because the FNMA Homepath renovation loan no longer exists. Living and working in Florida since the great Real Estate bust the FNMA Homepath renovation loan became one of the go to products to help buyers that were not cash buyers secure financing for the purchase and the renovation of the property all in one loan.
The good news is that the FNMA Homestyle Renovation loan in many ways is a better option then the FNMA Homepath Renovation loan that used to be availalbe up until October 6th of this year.
The one huge difference is the ability to use the FNMA Homestyle loan on just about any property that you can get a regular conventional mortgage on. The FNMA Homepath Renovation loan was restricted to only FNMA REO's (Foreclosures). In fact they were even less available than that due to the fact that many FNMA REO's were only offering regular FNMA Homepath Mortgages. Properties that didn't need obvious renovations were not usually offered by FNMA with the option to do the FNMA Renovation loan. The sad part of that restriction is that often homes that are okay to finance without the needing of repairs to get a loan, they are still great canidates for renovations. Renovations that could add value and comfort to the new homeowners were not an option unless the asset manager accepted an offer with a FHA 203k Loan or a FNMA Homestyle Renovation Loan. If you checked their website only the FNMA Homepath regular mortgages were available.
So now that the FNMA Homepath Renovation loans have left the market, we have the FNMA Homestyle back in style!