HomeStyle® Renovation

Fannie Mae HomeStyle® Renovation Loan

A Conventional Loan That Helps You Buy & Renovate with One Mortgage

Looking to purchase a home that needs some love—or breathe new life into the one you already own? The Fannie Mae HomeStyle® Renovation loan lets you finance both the home and the improvements with a single conventional mortgage.

Perfect for fixer-uppers, upgrades, or full-scale remodels, this loan can help turn your current house or your next home purchase into the dream home you’ve imagined.

Eligible Property Types

You can use a HomeStyle Renovation loan for:

• Single-family homes (primary, second homes, and investment)
• Townhomes and condos
• 2–4 unit properties
• Manufactured homes (with certain restrictions)

The home must be one you’re buying or refinancing—and the renovations must add value and be permanently attached to the home.

 
What Renovations Are Allowed?

HomeStyle offers flexible options for almost any improvement that’s permanent. Eligible updates include:

• Kitchen and bath remodels
• New flooring, paint, or roofing
• HVAC, plumbing, and electrical updates
• Room additions, basement finishing, or garage conversions
• Energy-efficient upgrades (windows, insulation, solar)
• Outdoor living spaces like decks, patios, or even pools
• Accessibility improvements (ramps, handrails, wider doors)

💡Luxury items may also be allowed as long as they add value to the property and are permanently installed.

 
Loan Amounts & Down Payment

The cost of renovations must not exceed 75% of the lesser of the [purchase price + renovation costs], or the [after-repair value] for purchase transactions; and 75% of the after repair value for refinance transactions.

Down payment requirements:

• Primary Residence = As low as 3% downwith income limits, otherwise 5% down. 
• Second Home = 10% down
• Investment Property = 15% down (1-unit properties only)
• See the Fannie Mae eligibility matrix for full details.

Gift funds and down payment assistance may be allowed on primary residences—ask us how to qualify.

Credit Score & Approval Requirements

To be eligible, you’ll typically need:

• A credit score of 620 or higher
• Proof of stable income and employment
• A licensed contractor to provide written renovation plans and cost estimates
• Renovations completed within 12 months of closing

How the Process Works

• Apply and get pre-approved
• Choose a home or refinance your current one
• Submit renovation plans and hire a contractor
• Close your loan—all in one transaction
• Contractor completes work and is paid through escrow

No second mortgage. No juggling financing. Just one loan with one payment.

 
Why HomeStyle?

• Finance upgrades and repairs at conventional rates
• Build instant equity by improving the home’s value
• Avoid the higher costs of personal loans or credit cards
• Renovate properties that wouldn’t otherwise qualify for traditional financing
• Finance up to 6 mortgage payments into the loan amount while the home is uninhabitable