How Fannie Mae Home Style Renovation Loans North Carolina works?
Jun 26 2023

Renovating your home can be a fantastic way to breathe new life into it. Whether you want to update your kitchen, add an extra bedroom, or modernize your living spaces, the North Carolina Fannie Mae Homestyle Renovation loan could be just what you need. With its flexible terms and competitive rates, this loan is designed to help homeowners like you realize their renovation dreams. In this blog post, we will closely examine how the Fannie Mae Homestyle Renovation loan works, its benefits, and how to apply for it.

What is the Fannie Mae Homestyle Renovation loan?

Renovation loans are financed by 203k rehabilitation loans. Unlike other renovation loans, the Homestyle Renovation loan covers structural and cosmetic upgrades. However, the renovation includes adding or removing walls, replacing roofing, upgrading plumbing systems, or adding new appliances. The best part is? Rather than using the property’s current value, the mortgage refers to the “after renovation value (ARV).” In this way, the homeowner or realtor is able to provide sufficient funds to complete the renovation. 

 Furthermore, these loans have great interest rates fixed for 30yr FHA. So whether it is small-scale improvements or major home reconstruction projects that require significant financing, the Home style Renovation Loan has got you covered. Please get in touch with Amy Bonis directly for more details on rehabilitation loans in North Carolina. 

How does a Renovation loan work?

Renovations can be financed into a home loan through Fannie Mae Home style Renovations. This means buyers can purchase a fixer-upper property and have the funds to make necessary repairs or upgrades. To qualify for this loan, borrowers must have a credit score of at least 660 or 680 and be able to provide income-to-debt ratio requirements. However, two types of 203K loans are available for primary residences.

  1. Streamline K Loan

This type of loan is for cosmetic work, in which the borrower can renovate the interior and exterior of the house. However, the total costs of the loan should not exceed $35k

  1. Consultant K Loan

Another name for consultant K loan is Full k or Hud consultant. However, this type of loan is typically used for homes that need more than $35k in repairs. Most of the time, borrowers need such a loan for structural repairs. 

Time to complete the project after approval

Once approved, borrowers will work with an approved contractor to complete all necessary renovations within six months. The lender will release funds in stages as each phase is completed, ensuring that work is done properly before any more money is released.

Moreover, to get renovation loans in North Carolina, you need a specified consultant that can help and supervise your loan process throughout. Amy Bonis from many years of providing her clients with the best loan services. For more details, you can get in touch with Amy

Benefits of the Fannie Mae Home style Renovation Loan

The Fannie Mae Home style Renovation loan offers various benefits to borrowers who want to finance home renovation projects. Here are some of them:

  • The loan allows borrowers to combine their purchase or refinance with renovation costs into a single mortgage payment. However, making it easier for them to manage their finances.
  • The loans do not require much equity. Finance is available up to 96-97% of the new property value, or sometimes even more. 
  • Another advantage is that the Fannie Mae Home style Renovation loan typically has fixed interest rates, i.e. 30, yr FHA. It is the best option if you compare it to other forms of financing, such as personal loans or credit cards.
  • By making updates and improvements through this loan program, homeowners may increase their property’s value, which could lead to higher resale values in the future.
  • Additionally, this type of loan provides flexibility regarding the types of renovations that can be financed, including structural changes and energy-efficient upgrades. 
  • Borrowers can also hire contractors of their choice and have control over the renovation process.

How do you apply for an FHA 203 K Renovation loan?

When it comes to applying for a renovation loan in North Carolina, there are some important steps you need to follow: 

  • Find a lender that offers this type of loan and check their eligibility requirements. For this, you can ask the loan lending services of Amy Bonis. 
  • You will need a good credit score to qualify for the loan, as well as sufficient income and savings. 
  • In addition, you should submit tax returns and bank statements.
  • Once you have determined your eligibility, work with your lender to create a renovation plan and budget. You will be able to use the loan funds more efficiently and effectively this way.

Moreover, applying for a renovation loan in NC can be a complex process but ultimately worth it if you want to make significant improvements to your home. Always ask for qualified loan lending services to eradicate the chances of non-approval. You can contact Amy Bonis to get her professional services for acquiring renovation loans for your home. 


The Fannie Mae Home style Renovation loan is an excellent option for renovating their home. Not only does it provide funding for the renovation project, but it also offers flexibility regarding what can be renovated and who can do the work. However, it is important for potential borrowers to research their options and speak with their lenders before deciding to finance their next home purchase. 
Therefore, by following these steps to apply for a Fannie Mae Home style Renovation loan, you will be one step closer to achieving your dream home. With the help of Fannie Mae Home style Renovation loans and dedicated professionals like Amy Bonis from NC Home Loans, you can transform your living space into something truly special. Contact Amy Bonis to get an approved loan to buy a distressed property, renovate, and add value.

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