To be eligible for Fannie Mae Homestyle, a property must be a one to four family dwelling that has been completed for at least one year. The number of units on the site must be acceptable according to the provisions of local zoning requirements. All newly constructed units must be attached to the existing dwelling. Cooperative units are not eligible.
Homes that have been demolished, or will be razed as part of the rehabilitation work, are eligible provided the existing foundation system remains in place.
In addition to typical home rehabilitation projects, this program can be used to convert a one family dwelling to a two, three, or four family dwelling. An existing multi-unit dwelling could be decreased to a one to four family unit.
An existing house (or modular unit) on another site can be moved onto the mortgaged property; however, release of loan proceeds for the existing structure on the non-mortgaged property is not allowed until the new foundation has been properly inspected and the dwelling has been properly placed and secured to the new foundation.
A Fannie Mae Homestyle mortgage may be originated on a “mixed use” residential property provided: