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203k Loan Consultant
Kansas City

(816) 455-8787

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The Fannie Mae – HomeStyle Rennovation Loan

Renovation-related costs that can be considered as part of the renovation costs include:

  • property inspection fees;
  • costs and fees for the title update;
  • architectural and engineering fees;
  • independent consultant fees;
  • costs for required permits; and
  • other documented charges, such as fees for energy reports, appraisals, review of renovation plans, and fees charged for processing renovation draws.

Note: An amount for sweat equity may not be factored into the renovation costs.

Property Requirements

The security property for a HomeStyle Renovation mortgage can be ….

  • a 1 to 4 unit principal residence,
  • a 1-unit second home, or
  • a 1-unit investment property.

The security property for a HomeStyle Renovation mortgage may be a unit in an eligible PUD, condo, or co-op project. Manufactured homes are not permitted.

When the security property is a unit in a condo or co-op project, the project must be one for which the proposed renovation work is permissible under the bylaws of the homeowners’ association or co-op corporation or one for which the homeowners’ association or co-op corporation has given written approval for the renovation work.

The renovation work for a condo or co-op unit must be limited to the interior of the unit, including the installation of fire walls in the attic.

HomeStyle Eligibility

The standard HomeStyle Renovation loan permits second homes and investment properties.

Mortgage Terms

A HomeStyle Renovation mortgage may be either a fixed-rate mortgage or an ARM loan. The original principal amount of the mortgage may not exceed Fannie Mae’s maximum allowable mortgage amount for a conventional first mortgage.

Fannie Mae provides a HomeStyle Renovation Maximum Mortgage Worksheet (Form 1035), to assist lenders in calculating the maximum loan amount. The cost of renovations is limited to 50% of the “as completed” appraised value of the property.

LTV Ratios

All of the applicable LTV, CLTV, and HCLTV ratios for HomeStyle Renovation mortgages can be found in the Eligibility Matrix.

The LTV ratio calculation differs based on the applicable transaction type.

  • For a purchase money transaction, the LTV ratio is determined by dividing the original loan amount by the lesser of the “as completed” appraised value of the property or the sum of the purchase price of the property and the total rehabilitation costs.
  • For a refinance transaction, the LTV ratio is determined by dividing the original loan amount by the “as completed” appraised value of the property.

Borrower Requirements

An individual home buyer or homeowner, a for-profit or nonprofit investor, or a local government agency that purchases existing dwellings for renovation is an eligible borrower for a HomeStyle Renovation mortgage.

When a nonprofit investor is the borrower, the lender must assess the nonprofit investor’s viability, by looking at its track record for raising funds for renovation, the background of its board members, a copy of the organization’s bylaws and purpose, a copy of the organization’s Internal Revenue Code Section 501(c)(3) statement, a copy of the organization’s latest IRS Form 990, and a copy of a board resolution authorizing the nonprofit to purchase and renovate the security property.

To ensure that the borrower understands all of the terms of a HomeStyle Renovation mortgage, the lender may use Fannie Mae’s HomeStyle Renovation Consumer Tips (Form 1204), as a checklist for the key facts that need to be disclosed to the borrower, and the borrower’s signature will serve as an acknowledgement of his or her understanding of these facts.

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FHA 203(k) Consulting

Are You Getting A 203(k) Renovation Loan And Looking For A  Certified 203(k) Consultant?

Look no further! We are nationally approved HUD/FHA 203(k) consultants and work harder to protect your interests than any other consultant in Kansas or Missouri.

From large to small renovations we are here to assist you in every step of the 203(k) loan process. From determining whether a property will meet your needs and HUD’s, to providing cost estimates, site visits and the proper forms our consultants can do it all.

Why Do You Need A FHA Consultant For 203(k) Renovation Loans?

Simply put, to protect you and the property you are investing in and to ensure renovations are properly completed. The job of a 203(k) Consultant is many. 

Trained & Certified FHA-203(k) Consultant

Dan Bowers, CMI, ACI, CRI provides borrowers using the FHA-203(k) or Fannie Mae HomeStyle Loan with Feasibility Reviews, Property Condition Inspection Reports,  Consultations and Work Write-Ups in the Kansas City Metroplex and surrounding areas of Kansas and Missouri within a 65 mile radius of his office including areas like Lawrence, KS on the West …. Platte City or Smithville, MO on the North; Odessa or Warrensburg, MO to the East; and Harrisonville, MO or Louisburg, KS to the South.

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(816) 455-8787 (off)
(918) 816-0607 (cell)

Holmes Inspection Company
FHA-203(k) & Fannie Mae HomeStyle Consultant
520 W. 103rd St #175
Kansas City, MO 64114
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Cities I Service in Missouri & Kansas for FHA-203(k) Loans

MISSOURI - Bates City, Belton, Blue Springs, Buckner, Drexel, Excelsior Springs, Freeman, Garden City, Gladstone, Grain Valley, Grandview, Greenwood, Harrisonville, Higginsville, Holden, Holt, Independence, Kansas City, Kearney, Lathrop, Lawson, Lee’s Summit, Lexington, Liberty, Lone Jack, North Kansas City, Oak Grove, Odessa, Parkville, Platte City, Pleasant Hill, Raymore, and Raytown, Richmond, Riverside, Smithville, Warrensburg, Weston.

KANSAS – Atchison, Baldwin City, Basehor, Bonner Springs, Bucyrus, Desoto, Edgerton, Edwardsville, Eudora, Fairway, Gardner, Kansas City, Lansing, Lawrence, Leavenworth, Leawood, Lenexa, Louisburg, Merriam, Mission, Mission Hills, Olathe, Osawatomie, Ottawa, Overland Park, Paola, Prairie Village, Roeland Park, Shawnee, Shawnee Mission, Springhill, Stilwell, Tonganoxie, Wellsville and Westwood

I will also do FHA-203(k) or Fannie Mae HomeStyle projects further out, BUT pricing is dependent upon the travel time, distance and extent of the Rehab or Repairs and the scope of the project / analysis.