Requirements:

• 620 credit score
• 5% down payment
• All rehab work must be completed by licensed and insured contractors
• FHA/HUD consultant oversees the projects to protect the borrower
• Home improvements must become a permanent part of the property

Benefits:

• Minimal out-of-pocket renovation costs
• Low credit scores accepted
• Fixed rate, adjustable rate, and term length options available
• Lower down payment
• Low refinancing interest rates
• Fewer costs by rolling repair and purchase/refinancing expenses into a single loan

Eligible Repairs (not a full list):

• Repair/replacement of roofs, gutters and downspouts.
• Repair/replacement/upgrade of existing HVAC, plumbing, and electrical systems
• Exterior and interior painting, including lead-based paint stabilization or abatement. Weatherization: storm windows and doors, insulation, and weather stripping

Requirements:

• All rehab work must be completed by licensed and insured contractors
• Minimum down payment is around 5%
• Appraiser will inspect all work and submit a completion certificate to Fannie Mae before funds can be paid to the contractors/designers.
• Renovations must be completed within six months after closing.

Benefits:

• Cost-effective way to renovate or improve a home
• Single mortgage means lower closing costs and typically a lower interest rate on a first mortgage
• Borrowers can qualify for CLTV of up to 105% with eligible Community Seconds® subordinate financing
• Loan amount based on “as-completed” value of the home or the cost basis (purchase moneyloans), whichever is less
• Fewer costs by rolling repairs purchase/refinancing expenses into a single loan

Eligible Repairs:

• Architects/designer expenses
• Energy efficiency assessments
• Engineering and design updates
• Required inspection and permit fees