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Found a diamond in the rough home in need of some tender loving care? You can both buy and get the money needed to renovate the home all in own easy loan with the Homestyle Renovation Loan from Cambria Mortgage.
The Fannie Mae Homestyle rehab loan, and the older FHA 203k rehab loan are extremely similar, and a lot of the information on this page applies to both products.
The Homestyle Renovation is a conventional loan, while the FHA 203k loan is a government backed loan. The two biggest differences we see are:
HomeStyle is not automatically better than a 203k loan, and a 203k loan is not automatically better than a Homestyle rehab loan.
Talk to one of our experienced rehab loan experts to determine which rehab loan may be better in your individual situation.
The HomeStyle Renovation program closes JUST ONE time. It is your long-term permanent form of financing. It is NOT a short term construction loan. The program allows from minor cosmetic repairs, all the way up to major remodels, major damage repair, storm damage, etc.
This loan can help with new paint (in/out), new siding, new roof, new flooring, new appliances, HVAC repair/replacement, electrical & plumbing repair & upgrades, new windows, decks, porches, patios, minor kitchen remodels, & more.
Any type of renovation or repair is eligible, as long as it is permanently affixed to the property. Renovations should be completed within a twelve-month period. Luxury improvements, like pools are not allowed.
For repairs under $50,000, you only need to work with your contractor. Repairs OVER $50.000 REQUIRE you work with an independent HUD Consultant to draw up detained repair plans. Talk to one of our rehab loan experts on how to find the required HUD Consultant.
We suggest using a general contractor with a strong track record to ensure that your work is done & done right, and that hopefully has experience with FHA 203k or HomeStyle Renovation loans. There is no special list or requirements for the contractor, and we do not give contractor referrals. You can have up to three contractors, but we strongly suggest you use just one.
For purchase transactions, loan-to-value (LTV) ratio is based on the lesser of:
For refinance transactions, the LTV ratio is determined by dividing the original loan amount by the “as completed” appraised value of the property. MH is eligible with HomeStyle Renovation, with the eligible renovation funds capped at the lesser of $50,000 or 50% of the “as completed” appraised value. Borrower may not receive cash back aat closing in any amount (Fannie Mae standard limited cash-out refinance of 2% or $2,000, whichever is less, is NOT PERMITTED for this product).
The following are maximum LTV/CLTV/HCLTV ratios for purchase or LCOR when HomeStyle Renovation mortgages are underwritten with DU* (note that borrowers can also qualify for up to 105% CLTV with eligible Community Seconds®):
One-unit investment properties:
While technically an small amount of the under not exceeding 10% is allowed by Fannie Mae, most lender DO NOT ALLOW you to complete any of the work.
Lender may advance funds of up to 50% of the cost of materials any time after closing of the loan to secure necessary supplies for the project. Renovation costs may include:
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Cambria Mortgage
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Equal Housing Lender. The Joe Metzler Team at Cambria Mortgage lends in Minnesota, Wisconsin, Iowa, North Dakota, South Dakota, Colorado, and Florida only. This is not an offer to lend or to extend credit, nor is this a guaranty of loan approval or commitment to lend. Information here can become out of date, and may no longer be accurate. Products and interest rates are subject to change at any time due to changing market conditions. Not all programs available in all states. Actual rates available to you may vary based upon a number of factors. Consumers must independently verify the accuracy and currency of available mortgage programs. All loan approvals are subject to the borrower(s) satisfying all underwriting guidelines and loan approval conditions and providing an acceptable property, appraisal and title report. Joe Metzler, NMLS 274132, Cambria Mortgage NMLS 322798. © 1998 - 2025.