Fannie Mae HomeStyle Renovation Loans are not just for detached homes, they can also be used for condos as well.
However, one critical step that exists with condos, that does not exist with most single family detached homes, is that homeowners must obtain written approval from the HOA prior to making any renovations. This will validate that the proposed renovations abide by the governing docs of the condo association and the CC&R's.
For homeowner’s looking to refinance, the initial step is just submitting your proposed renovations to the HOA and obtaining their approval. Once obtained, the process can continue forward.
For buyers looking to purchase a condo and utilize a Fannie Mae Homestyle Renovation Loan, this can pose a potential problem. How can you submit a plan to the HOA when you don’t own the property?
One solution that we’ve seen in the past, is that the current homeowner/seller can get HOA approval, and pass this approval onto the new buyer in order to successfully obtain the loan.
For more questions on using a HomeStyle or even a 203(k) loan in a condo, feel free to reach out to us.