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10721 Jackson Lane, Frisco TX 75035

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Community Renovation

An Affordable, Flexible Mortgage Option to Purchase and Renovate 1-4 Unit Properties

Existing housing stock in communities throughout the country offers opportunities for first-time homeownership. Many of these homes are aging and in need of renovation, however, which can prove costly for home buyers with limited finances. Fannie Mae’s MyCommunityMortgageTM product includes a Community RenovationTM 1-4 Family option – enabling lenders to support community revitalization efforts while serving borrowers seeking to purchase and renovate a 1-4 unit property. The Community Renovation 1-4 Family option also offers lenders a range of flexibilities and underwriting through Desktop Underwriter®. Now, the speed, power, and efficiency of automated underwriting are available for MyCommunityMortgage for borrowers who want to purchase and renovate a 1-4 unit home – in a single mortgage. 

Community Renovation 1-4 Family enables borrowers to purchase a single-family property, including condominiums, or a 2-4 unit property with a low down payment and finance renovations having a total cost of up to 50 percent of the "as completed" value of the property. Now, a borrower can purchase a home and make renovations, such as updating kitchens and bathrooms – in a single mortgage. 

Consumer Benefits

  • Finance renovations with a total cost of up to 50% of the "as completed" property value
  • Up to 97% LTV
  • As little as $500 from borrower's own funds
  • Flexibility on reserves

Community Renovation 1-4 Family Highlights


Maximum 97 percent LTV on 1 unit, including condominiums (minimum of $500 from borrower’s own funds)

Maximum 97 percent LTV on 2 units (minimum of 3 percent from borrower’s own funds)

Maximum 90 percent LTV on 3-4 units (minimum of 5 percent from borrower’s own funds)

Up to 50 percent of the as-completed value of the property can be used toward renovation


Target Audience for Community Renovation 1-4 Family

Community Renovation 1-4 Family is ideal for borrowers with limited funds for down payment who wish to purchase and renovate an existing 1-4 family property, and those needing extra flexibilities on credit or income sources.


For borrowers who:          Community Renovation 1-4 Family delivers:

Have limited savings


As little as $500 from the borrower’s own funds for down payment (minimum of 3 percent from borrower’s own funds for 2 units;  minimum of 5 percent from borrower’s own funds for 3-4 units) 

Flexibility on reserves

Standard Fannie Mae guidelines pertaining to flexible sources of funds for closing costs and any remaining down payment, if necessary (generally, a gift from a family member; or a gift, grant, or loan from a nonprofit organization, municipality, or employer)


Do not have traditional credit


Alternative credit evaluation, including allowance of nontraditional credit


Need help managing monthly payment


Ability of borrower to use rental income from additional units to help make monthly payment




2006 Conforming Loan Limits

Number of
Maximum original
principal balance
Alaska, Guam, Hawaii,
and U.S. Virgin Islands only
1 $417,000 $625,500
2 $533,850 $800,775
3 $645,300 $967,950
4 $801,950 $1,202,925



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10721 Jackson Lane, Frisco TX 75035

214-387-0683EMAIL: info@brown-lending.com


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