Stonegate Realtor Book

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LOANS AVAILABLE THROUGH HIP Fannie Mae HomeStyle ® Renovation know your options The Fannie Mae HomeStyle ® Renovation Loan is a conventional mortgage that allows you to purchase a new home or pay off your existing mortgage and finance substantial home repairs or improvements in a single mortgage up to $417,000. This loan follows all conventional underwriting guidelines and can be used for primary residences, second homes and investment properties (additional restrictions may apply). There are no restrictions or limitations on the repairs or improvements you can make to your property; as long as the value of the improvements is supported by the after improved value appraisal and the cost of the renovation is within product guidelines. A HomeStyle ® Renovation Loan is also one of the best options in instances where a new home is unfinished because a builder went out of business. Some examples of eligible repairs include (not an all-inclusive list): • Any and all improvements that are fixed to the property and add value • Structural improvements, such as room additions • Finished Basements • Deck or additional garage space • Landscaping • Fencing • Driveways • Interior updates, such as gourmet kitchen, theater, game room Some examples of ineligible repairs include: • Repairs to properties such as log homes, condotels or manufactured homes • Projects in which the funds for renovation (including contingency reserve, soft costs, and payment reserves) would exceed 50% of the home’s “as completed” value A lender-assigned Project Inspector is required on this type of loan to complete a feasibility study, and to manage the inspections and draws. All work must be performed by licensed and bonded contractors as required by local and/or state laws, with no more than 3 discreet contractors. As a homeowner, you may be able to perform the repairs, but only if you are a licensed general contractor. Under certain circumstances the homeowner may act as a general contractor but only with lender approval. get HIP with <strong>Stonegate</strong> Mortgage stonegatemtg.com/hip 855 396 0228 9
LOANS AVAILABLE THROUGH HIP Fannie Mae HomeStyle ® Renovation (continued) know your options Payments are made to contractors after loan closing and upon the completion of predetermined project phases, with a maximum of five draws. Final payment is made only after repairs have been satisfactorily completed and appropriate documentation is provided. All conventional loan guidelines apply (i.e., credit criteria, required investment, property standards). Please consult your Mortgage Advisor for more information. Please see the chart below to compare the three different types of HIP loans. HIP Mortgage Type Streamline 203(k) FHA 203(k) HomeStyle ® Minimum Cost of Repairs No minimum $5,000 No minimum Allowed Repairs Any non-structural repairs or improvements which can be completed for less than $31,000 and which are supported by after improved appraisal value Any repairs supported by after improved value appraisal No restriction on repairs or improvements which are attached to the property and which are supported by after improved appraisal value Renovation Amount $0 to $31,000 $5,000 to FHA county lending limit $0 to $417,000 Number of Contractors 1 to 3 trades persons or 1 general contractor 1 to 3 trades persons or 1 general contractor 1 to 3 trades persons or 1 general contractor Amortization Terms 15 or 30 year fixed rate 15 or 30 year fixed rate 15 or 30 year fixed rate Transaction Types Purchase or refinance Purchase or refinance Purchase or refinance Occupancy Owner occupied only Owner occupied only Owner occupied or investor (maximum of 70% LTV) Purchase Down Payment Requirement 3.5% 3.5% 5% Refinance Loan to Value 97.75% 97.75% 95% Required Contingency Reserve 10% minimum – 20% maximum 10% minimum – 20% maximum 10% minimum – 20% maximum Number of Contractor Draws 2 Maximum 5 Maximum 5 Contractor Payment Schedule 50% of complete bid amount after loan closes and escrow funds May allow 1 limited, special order material draw, maximum 5 draws There are no funds released prior to completion and inspection of any of the project phases We can help your home buyer or seller determine which loan is right for them, but it helps to have a general overview of our loan types so you know how to present HIP as an option. Now we have a deal! Let’s discuss how you will work with your HIP Team. get HIP with <strong>Stonegate</strong> Mortgage stonegatemtg.com/hip 855 396 0228 10
Page 1 and 2: REALTOR ® KIT
Page 3 and 4: WELCOME TO STONEGATE MORTGAGE’S H
Page 5 and 6: A LOOK AT WHAT HIP CAN DO FOR YOU L
Page 7 and 8: LOANS AVAILABLE THROUGH HIP Streaml
Page 9: LOANS AVAILABLE THROUGH HIP FHA 203
Page 13 and 14: WORKING WITH YOUR HIP TEAM What is
Page 15 and 16: A CHECKLIST FOR SUCCESS - YOUR GUID
Page 17: 855 396 0228 stonegatemtg.com/hip

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