Fixer-Upper/Renovation Loans

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Renovation Loans allow you to compete with the cash buyer because you can do the renovation AFTER close of escrow. Non-Renovation loans require the property to be “livable” BEFORE close of escrow, meaning that all components have to work. Smart sellers will take your offer instead of low-ball cash offers. Renovation Loans require a 620 credit score.

Primary Residence FHA 203k
3.5% down (of the purchase and repair costs of the property)
Four-plex’s are eligible as long as you live in one of the units
Maximum loan amount $294,515

Primary Residence Fannie Mae HomeStyle Renovation*
5% down (of the purchase and repair costs of the property)
Maximum loan amount $453,100

*3% down for first-time buyers, meaning you haven’t owned property in the last 3 years.

Rental (Investment) Properties Fannie Mae HomeStyle Renovation
20% down (of the purchase and repair costs of the property)
Maximum loan amount $453,100

 One to four-unit primary residences, one-unit second (vacation) homes, or one-unit investment (rental) properties, including units in condos, co-ops, and PUDs.
 Any type of renovation or repair is eligible, as long as it is permanently affixed. Renovations should be completed within one year.
 Borrower chooses their own contractor to perform the renovation.
 Lender must review the contractor hired by the borrower to determine if they are adequately qualified and experienced for the work being performed.
 Borrowers must have a construction contract with their contractor. Fannie Mae has a model Construction Contract (Form 3734) that may be used to document the construction contract between the borrower and the contractor.
 Plans and specifications must be prepared by a registered, licensed, or certified general contractor, renovation consultant, or architect. The plans and specifications should fully describe all work to be done and provide an indication of when various jobs or stages of completion will be scheduled (including both the start and job completion dates).

“Do-It-Yourself” Work
Borrowers can perform the renovation work themselves at the lender’s discretion, provided that:
 The Do-It-Yourself financing does not exceed 10% of the as completed value. Note: Inspections are required for all work items that cost more than $5,000.
 The property is a one-unit owner-occupied home, and not a manufactured home.
 The reimbursement is limited to the cost of materials or the cost of properly documented contract labor (sweat equity may not be reimbursed).

A few years ago, I built my own house from the ground up without a contractor. If you use me for your Renovation Loan, you get my free advice even after the loan closes. Plus, I’m known and respected by many listing agents, so my name on the Pre-Approval letter carries some weight.

If you are interested in seeing how I built my house you can watch the trailer for Dan Builds a House on you You Tube by clicking HERE or watch the full movie on Amazon by clicking HERE.

Your Nevada Renovation Loan Specialist:

Talk or Text – 702-326-7469
DSherbondy@AllWestern.com

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