Hurricane Ian was a devastating hurricane and many are still trying to rebuild. We wanted to share this information that may be helpful!
There are several Hurricane Ian programs out there that were instituted for people who lost their homes, condos, or MH due to Hurricane Ian.
IT ALSO APPLIES TO RENTERS whose rental was destroyed by Hurricane Ian.
The property owner or renter can now qualify for 1-year from the date of the storm to buy a replacement primary residence at 100% financing with no money down through FHA. They still must have employment, income sufficient to qualify, and credit scores of 580 or higher. But it alleviates the 3.5% down payment required for an FHA purchase mortgage.
Fannie Mae Homestyle Renovation Loan
There is a conventional loan program called the Fannie Mae Homestyle Renovation Loan that can help with rebuilding homes damaged by the hurricane.
This loan program lets borrowers combine the purchase or refinance of a home with the costs to renovate or extensively remodel the property.
At closing, all funds for renovation will be escrowed in an interest-earning account. After all renovation work is complete, any remaining funds in the renovation escrow account will be used to pay down the principal balance of the mortgage. Soft costs such as architectural services, engineering, and permit fees may be financed.
A Construction Survey will be needed if the footprint of the home is changed and/or there is an additional structure to the home that is being added (i.e., pool, deck, garage, outbuilding, etc.). Full builder third-party contracts are required for any estimated repairs or additions and are added to the purchase contract purchase price or current appraised value to determine the after-fix-up value for the final loan-to-value calculations.
Features and Benefits:
Combine purchase or refinance with renovation costs
Renovation costs cannot exceed the lesser of 75% of the estimated completed value of the home or purchase price plus repairs. Example: Base Price $400K. New Pool $60K. New Roof $30K. After-fix-up total of $490K. Could have up to $367,500 (75% of after-fix-up value) in repairs or additions. In this case, only $90K of the $367,500 available was used so it would be fine).
Conventional loan limits (up to $700K)
Max LTV up to 97% (Primary Homes)
Max LTV up to 90% (2nd Homes)
Eligible property types:
1 to 4-unit site-built homes
Planned unit developments (Fannie Mae-warrantable)
Condominium (Fannie Mae-warrantable only)
Modular homes (constructed in sections off-site, but when installed at the site takes on the characteristics of a site-built home)
No Mobile Home Financing Allowed (yet)
For more information, contact Thomas Mihalik – NMLS#907631
Best Interest Mortgage – NMLS#299599
Call Today! 239-596-3977