Look at the
possibilities
HOMESTYLE
RENOVATION
HOMESTREET: WHO ARE WE?
Based in the Northwest, HomeStreet Bank if one of the largest community banks in the
Northwest and Hawaii. HomeStreet began in 1921 as Continental Mortgage and Loan
Company, offering financing for commercial real estate and home mortgages as a
mortgage banker broker. HomeStreet evolved into a full service bank in 1986, further
expanding its products and services.
In the mortgage business for over 90 years, HomeStreet provides its customers with a
level of stability and continuity rare in today’s banking world. We’ve always stayed
focused on what we believe is most important: building long-term relationships with our
customers and providing ongoing support to our communities.
HomeStreet has consistently been recognized by the federal government as
“Outstanding” under the Community Reinvestment Act.
WHO AM I?
Kriss Parnell NMLS#174928
• 12 years within the Mortgage Industry.
• State Certified Homebuyer Educator.
• Specializes in Renovation and
Construction Loan. Current with the
First Time Homebuyer Programs
available today.
Homeownership creates stability for families, builds
communities and is the greatest source of personal
wealth. Because of this, all mortgages are not created
equal and it’s important to me to understand a buyer’s
personal goals and help achieve them.
My service doesn’t stop at loan closing, therefore, I’m
available long after to offer assistance and advice.
Inventory is low and the perfect home may not be available.
Great way to increase equity!
Great way to cut energy costs!
Provide a healthy and safe home the minute your buyers move
in. No more deferred maintenance.
Show less homes and devote more time to new clients.
WHY RENOVATION?!
CREATE THE PERFECT HOME!
The Homestyle Renovation Mortgage is
a single-close CONVENTIONAL loan
that enables borrowers to purchase a
home that may need renovation, or
refinance the mortgage on their
existing home, and include the
existing funds into the loan balance.
The loan amount is based on the “as -
completed” of the home rather than
the present value.
WHAT IS A HOMESTYLE RENOVATION
MORTGAGE?
One Loan to Purchase (or Refinance) and
Renovate a Home
Conventional Fannie Mae Guidelines.
Owner Occupied, Second Home and
Investment.
95% LTV on a 1-unit Owner Occupied.
30 YR and 15 YR Available.
Standard Private Mortgage Insurance Rates.
No MI with 20% down.
Maximum Loan Amount $417,000
QUICK FACTS
Owner-Occupied 1-4 Units.
Second Home 1 Unit.
Investment Properties 1 Unit.
Condos, Co-Ops and PUD.
*Borrowers cannot have more than 4 financed
properties.
ELIGIBLE PROPERTIES
ELIGIBLE REPAIRS
RENOVATIONS MUST: • Be permanently
affixed to the property.
• Add value to
the property.
FOR EXAMPLE: • Interior renovation or
improvements. • Fences. • Decks. • Landscaping. • In-Ground Swimming
pools.
Fannie Mae has few limits on the type of work it covers with the
HomeStyle Renovation Mortgage. The only requirements are that renovations must
be permanently affixed to the property and add value to it. The program does not
otherwise specify the types of improvements that can be financed.
No minimum renovation amount.
Maximum renovation amount limited to 50% of the “as -
completed” value.
Reconstruct from the foundation up.
HUD Consultant not required.
Pest and dry rot report not required unless provided by
borrower or referenced by appraiser.
Feasibility report required with work over $75,000.
Maximum 2 contractors = NO general contractor required.
3 or more contractors = General contractor required.
6 months to Final Distribution. Work complete in 5 mths
and 1 mths for final inspection and disbursement .
PROGRAM DETAILS
Purchase Price $350,000
5% down $17,500
Loan Amount $332,500
Interest Rate 4.5% /4.698% APR
Seller Paid $9000
CC/Prepaids $2882/$10031
Cash to close $21,413
PAYMENT $2064
COMPARISON TO HOMESTYLE
Purchase price +
Renovation $350,000
5% Down $17500
Loan Amount $332,500
Interest Rate 4.625% /4.836% APR
Seller Paid $9000
CC/Prepaids $4448/$10048
Cash to close $22,996
PAYMENT $2088
Conventional Loan HomeStyle Renovation
Purchase price +
Renovation $350,000
3.5% down $12,250
Loan Amount $343661
Interest Rate 4.125% /5.772% APR
Seller Paid $9000
CC/Prepaids $5410/$4641
Cash to close $13301
PAYMENT $2421
HOMESTYLE TO 203 K
Purchase price +
Renovation $350,000
5% Down $17500
Loan Amount $332,500
Interest Rate 4.625% /4.836% APR
Seller Paid $9000
CC/Prepaids $4448/$10048
Cash to close $22,996
PAYMENT $2088
203 K Loan HomeStyle Renovation
Get Pre-approved
Interview Contractors. Contractor to submit questionnaire and resume.
Find A Home.
During Inspection period, meet with Contractor, Inspector and optional HUD Consultant.
Contractor submits bids.
Appraiser performs appraisal using bids to complete a “Subject to Renovation” value.
THE PROCESS
Lender Review/Loan Processing
Loan Approval
Loan Closing.
Construction Begins.
Releases from Construction Escrow Account
for Draw Disbursement.
Completion of Work/Final Inspection.
THE PROCESS
LISTING AGENT BENEFITS
The Listing Agent Advantage:
Great way to move your listings.
Educating other agents and potential buyers about the
custom home option may add value to your listing
presentation.
This may help you market a home in a desirable
neighborhood that has been perceived to be “unsalable.”
You can guarantee the seller they can close without
requiring work orders to be completed.
Commissions are paid when the loan closes, before any
work begins on the property.
Repeat and referral business for you from satisfied sellers!
SELLING AGENT BENEFITS
The Selling Agent Advantage:
Expand the home buying options your client considers when you talk about the Renovation loan.
Commissions are paid when the loan closes, before any work begins on the property.
Buyers more apt to purchase quicker when not looking for perfection.
No post-closing hassles for the agent.
You choose your level of post-closing involvement with the process.
The average time to close this loan is 45 days after a complete file is submitted to underwriting.
Repeat and referral business for you from happy clients!
Low down payment and interest rates
“Built in” Equity
Contractors Paid When Work is
Completed
Upgrade the home your way.
Refinance existing mortgage to improve
your home
BUYER BENEFITS
A true “One Step” construction loan!
This product enables you to do a custom construction project with one loan.
You pay interest based on the Note rate during the course of construction that is calculated on the total amount of draws made to the date of interest calculation.
Upon completion of construction the loan converts to a permanent loan with fully amortizing payments over the remaining term.
Large renovations ($150,000 minimum) of properties are allowed.
ONE STEP CONSTRUCTION
10% down payment.
Owner Occupied and Second Homes Only.
No Investment Properties, Multi-units.
No Kit Homes..
41% debt to income ratio.
700 credit score.
GENERAL GUIDELINES
The 203 K follows traditional FHA guidelines.
Minimum credit score 620.
3.5% down on purchase price + repairs.
Non-traditional Sources of Down Payment.
Max. Loan Amount in Portland Area $362,250.
FHA 203K - RENOVATION
Owner Occupied Only.
1-4 Units.
Manufactured Homes.
Condos. * restrictions apply.
Mixed Use properties.
5-7 unit properties if the renovation is to
create a 1-4 unit.
ELIGIBLE PROPERTIES
Structural alterations
Reconstruction
Improve appearance
Eliminate obsolescence
Repair/replacing well and/or septic
Roofing
Siding
Gutters and downspouts
Landscaping
Kitchen Renovations
Bathroom Renovations
Heat and Air Conditioning systems
Replacement windows and doors
Finish Basements
Waterproofing
Plumbing and Electrical upgrade
Appliances
Floor and Wall covering
New garage **
Reconstruct from the foundation up
Site improvements
ADA Modifications
Additions **
ELIGIBLE REPAIRS
OUR BUYERS
MR. & MRS. F. T. Homebuyer
Sissy and Junior
Questions?
I appreciate the opportunity to talk with you today!
Feel free to contact me with questions.
Kriss Parnell- NMLS # 174928
503-997-9419
THANK YOU!