However, the Fannie Mae's Rehab program, known as The Homestyle Mortgage, allows investors as well as owner occupants to take advantage of including the repairs into the borrowed funds. The downpayment requirements are such that an investor must have a 30% investment while an owner-occupant needs a minimum of a 10% downpayment.

The advantages of both the 203-K and Homestyle plans are essentially the same. They both allow a homeowner to purchase a home in need of repairs and take ownership of the property with all renovations performed after transfer of the title. Most all types of mortgages mandates all repairs to a property, required by an Appraiser or a City Building Inspector, be completed before the closing of the title. To Sellers, Realtors and the Mortgage Industry, that is the real benefit of the 203-K and the Homestyle Plan.

The Homestyle offer much higher loan limits than its' counterpart. Since the government sets the loan limits on the 203-K, those guidelines are considerably lower than the Conventional Fannie Mae program. The current maximum lending limit for the Homestyle is $252,700, while the 203-K is $161,500 in Atlantic County. There are no income limitations for both the 203-K and Homestyle.

Restrictions on the Homestyle Investors include allowing only a single-family unit to be eligible for financing. No two,three or four family properties are accepted.

Conversely, multi-units are acceptable for people who are going to live in the property. However, a larger downpayment is required.

Anyone that owns or owned knows that all homes needs constant maintenance and care. These programs are in place for this purpose. Instead of purchasing homes and fixing the home when the money becomes available, take advantage of the Rehab programs. The idea is a good sound one. The programs work, and works well!