If you’re looking to utilize a Fannie Mae HomeStyle Loan to refinance and remodel your home, you may be wondering what your maximum loan amount might be.
It’s important to remind you first, that an evaluation of your Debt-to-Income Ratio must indicate that you have the ability to handle a larger mortgage payment. As long as you do, a rule of thumb is that your renovation budget cannot exceed 50% of the As Completed Value.
Remember, the As Completed Value is determined by an appraiser, who walks through your home in its current state, and reviews the proposed renovation plans, and determines what the value of your home will be after the remodel.
Cash-out refinances are not permitted with Fannie Mae HomeStyle Loans. All funds must be used in the renovation,