Using A Homestyle Loan To Buy A Property
Do you currently own your own home that needs some renovation, or are you interested in buying a property that is in need of repair? Fortunately, if you need some additional funding to help remodel and make improvements to a new or refinanced home, there is a unique loan opportunity available to you called a homestyle loan. If you are interested in obtaining funding to help renovate your property in Palm Beach, Tri-County, or Broward County, Florida, CTC Mortgage is here to help. Read on to learn more about your property renovation options with a homestyle loan.
How Does A Homestyle Loan Work?
Homestyle loans are backed by the federal government and their purpose is to offer either new or current homeowners the opportunity to repair and update a recently purchased property or one that is already owned. A homestyle loan can be used to either purchase a property or refinance an existing mortgage and also includes financing for renovations. The amount of funding you receive for a homestyle loan will depend on the overall value of your home after the renovations have been made rather than the home’s current value, which helps in getting a borrower a higher amount of funding. A borrower may use a homestyle loan for many different types of repairs and updates, including kitchen, bedroom, and bathroom renovations, new painting, landscaping, flooring, roofing, and energy efficient improvements, etc.
The Advantages of A Homestyle Loan
There can be several benefits to obtaining a homestyle loan. Most of these loan types generally have comparably lower interest rates than other types of loans or home lines of equity (HELOCs), and in some cases, down payment amounts can be lower as well. Also, some qualified borrowers of homestyle loans might not need to pay fees that are typically associated with other loans, such as closing costs. Another advantage of homestyle loans is that you can use it to improve several different types of properties, including multi-unit properties and vacation homes. Homestyle loans allow borrowers to make significant improvements to the property, which will increase your home’s overall value.
Qualifying For A Homestyle Loan
There are certain requirements that must be met in order to qualify for a homestyle loan, including:
- A down payment of at least five percent must be made
- A credit rating of at least 640 or higher
- A debt-to-income (DTI) ratio of fifty percent or lower
- A borrower must add the cost of any renovations needed to the overall value of the property.
If you are interested in obtaining a homestyle loan in the areas of Palm Beach, Tri-County, or Broward County, Florida, contact CTC Mortgage today for a consultation.
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