HomeStyle Mortgage offers borrowers of all income levels up to 90 percent financing for the purchase and improvement of a home. Financing is based on the "as-completed" appraised value of the home, and borrowers can use up to 50 percent of that value for improvements or repairs.
Fannie Mae does not specify which improvements a borrower may or may not finance. This means that the improvement funds can be used for "cosmetic" purposes such as carpeting and various kinds of remodeling. There is no minimum amount that needs to be spent on repairs. The improvements should be performed by contractors who are licensed, registered, or certified or have the highest level of certification required.
