Fannie Homestyle Loan - ARV/PMI question

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I am looking into a property to "house hack" that would require renovating a second building on the property into a rentable second unit. The Fannie Homestyle loan looks like a pretty attractive option for this purpose. There are low downpayment requirements, and the cost of renovations that can be included are pretty significant.

Here's my question that I cant seem to find online, and wonder if anyone here has experience: The homestyle loan is based on the ARV of the total purchase. So hypothetically, is it possible to not pay PMI with less than a 20% down payment if the total loan amount is less than 80% of the ARV?

For example:

List Price: 400K + Reno: 100k = total 500K

ARV = 600k - Could I then put down only 20K (4% of total price) and avoid PMI?