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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
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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