Homeowners can get into the act with “Do It Yourself” repairs through Fannie Mae Homestyle Renovation loans.
However, there are strict limitations and restrictions.
“Do It Yourself” projects can only be performed on single unit properties. They cannot be performed on multi-unit projects. The repairs can also only be completed IF the lender reviews and approves in advance. The Fannie Mae handbook reads “These repairs may not represent more than 10% of the “as completed” value of the property.
The lender must also inspect the completion of all repair items that cost more than $5,000. The borrower cannot request reimbursement for the costs of his or her sweat equity.
The lender will also account for the cost of any DIY projects in the budget, so that in the event that it is not completed by the borrower, a contractor can be hired to complete the work.