The HomePath® Renovation Mortgage allows a buyer to purchase and renovate a property with one loan and one closing, up to $35,000 in home improvements. With one loan, there is only one application, one set of fees, one closing and one monthly payment.
Improvements can include anything that adds value to the home, such as new carpeting, plumbing, roofing or a new kitchen. The loan can also be used for energy efficiency improvements.
A HomePath® Renovation Mortgage can create huge value for home shoppers looking to:
- Buy a home in a neighborhood that they could not ordinarily afford by purchasing a fixer-upper.
- Include all their upgrades and repairs in one loan.
- Purchase a home with only 3% down payment on the total sales price plus the cost of repairs for single-family owner occupied properties (15% down for Investment property and 25% down for 2 to 4 Units).
- Streamline the process because closing occurs first, then repairs must be completed within 6 months of the closing date.
- Replace anything from carpet, paint and appliances, to light fixtures, plumbing fixtures, window repair or replacement and more, and include it in the financing.
- Maximize a property’s potential. The loan is based on the after-improved value – what the house will be worth once the renovations are complete.
- Customize the home to the buyer’s taste.
- Purchase and rehab a Fannie Mae HomePath® property.
We are an approved Fannie Mae HomePath® Renovation Mortgage lender who can help navigate clients through the home buying process. The HomePath® Renovation Mortgage is available for owner-occupied primary residences, second homes and investment properties.
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If you need assistance locating a Prospect employee, please call our Operator at 1-800-464-2484