As construction consultants we play a central, required role in the Fannie Mae HomeStyle Renovation Loan process. Our job is to protect the lender, guide the borrower, and keep the project on track from start to finish. Here’s a clear breakdown of how we assist:
1. Pre-Approval / Planning Stage
Scope Review
We help you translate ideas into a realistic construction plan by reviewing:
- The project scope
- Contractor bids
- Proposed renovation budget
- Feasibility of the timeline
Work Write-Up
We can create a detailed “work write-up,” which becomes the official construction plan for the lender outlining:
- Materials
- Labor costs
- Sequence of work (optional)
- Estimated timelines (otional)
Ensuring everyone (contractor, borrower, lender) agrees on exactly what will be done.
2. Contractor Validation
Fannie Mae requires contractors to be vetted, we ensure:
- The contractor is properly licensed
- Insurance is valid
- The contractor has experience with similar projects
- Bids match the project scope and are reasonable
Prevents borrowers from hiring unqualified reducing risk for the lender.
3. Budget & Renovation Cost Review
The consultant confirms that:
- The renovation costs fit within HomeStyle guidelines
- The contingency reserve (usually 10–15%) is appropriate
- The appraiser will look over the write up to assign the appraised “after-repair value”
This is critical for loan approval.
4. Lender Reports & Documentation
The consultant prepares required reports for the lender such as:
- Feasibility study
- Cost estimate breakdown
- Work write-up
- Final project package
These reports along with the appraisal help determine how much the lender is willing to finance.
5. Construction Phase Oversight
During renovation, the consultant becomes the lender’s “eyes and ears.”
Draw Inspections
Funds are released in stages (draws). The consultant:
- Visits the property
- Confirms the completed work matches the approved scope
- Work meets industry standards
- Inspections are performed as required insuring contractors follow plans and codes
- Approves or denies draw requests from the contractor
Without the consultant’s approval, the lender won’t release money.
Change Order Management
If the borrower wants to change anything:
- The consultant reviews it
- Confirms cost
- Submits revised documentation to the lender
This keeps the project compliant.
6. Final Inspection & Closing Out the Project
At project completion, the consultant performs a final inspection to certify:
- All work is finished
- It matches the original scope (plus approved change orders)
- The property is safe and livable
The lender uses this to release the final draw and officially close out the renovation portion of the loan.
A HomeStyle Renovation Loan construction consultant is part project manager, part inspector, and part risk-manager for both the borrower and lender. Without a qualified consultant, the loan usually cannot move forward. We can help, call us at 410-761-1752
