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The HomeStyle Renovation (HSR) Mortgage permits borrowers to include financing for home improvements in a purchase or refinance transaction on existing homes.
The appraisal report for a HomeStyle Renovation mortgage must provide an as completed appraised value that estimates the value of the property after completion of the renovation work.
Unused contingency funds, unless they were received directly from the borrower, must be used to reduce the outstanding balance of the renovation loan after all of the renovation work has been completed and the certification of completion has been obtained.
A home appraisal is required on a HomeStyle renovation loan. The appraiser will need a copy of your construction contract to complete the appraisal. You may also need to pay for a final inspection update so the appraiser can confirm all of the work is completed.
A contingency reserve equal to 10% of the total costs of the repairs and renovation work must be established and funded for a mortgage that is secured by a two-to-four-unit property to cover required unforeseen repairs or deficiencies that are discovered during the renovation.
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A contingency reserve equal to 10% of the total costs of the repairs and renovation work must be established and funded for a mortgage that is secured by a two-to-four-unit property to cover required unforeseen repairs or deficiencies that are discovered during the renovation.
Appraisal Requirements The appraisal report for a HomeStyle Renovation mortgage must provide an as completed appraised value that estimates the value of the property after completion of the renovation work.
With a HomeStyle loan, you can borrow up to 95% of a propertys after renovation value up to Fannie Maes maximum loan limit of $548,250 (or $822,375 in high-cost markets).

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