Conventional’s version of the construction loan.

The Overview of the HomeStyle Renovation Loan

The Fannie Mae HomeStyle® Renovation Loan is designed for homebuyers or homeowners who want to finance both the purchase (or refinance) of a property and the cost of renovations—all in a single mortgage.

Instead of taking out separate loans for buying and renovating a property, this program allows you to borrow based on the after-renovation value of your home, giving you more purchasing and borrowing power.

Key Features of the HomeStyle® Renovation Loan

• One Loan, One Closing: Buy and renovate or refinance and renovate with a single mortgage and closing.
• Flexible Property Types: Available for primary homes, second homes, and investment properties.
• Wide Range of Improvements: No required list of renovations; nearly any permanent improvement is allowed.
• Low Down Payments:
  • Up to 97% financing for primary residences.
  • Up to 90% for second homes.
  • Up to 85% for investment purchases.
• Fixed Rates Available: Choose 15-year or 30-year fixed mortgages.
• Soft Costs Included: Architectural, engineering, permits, and other fees can be financed.
• Contingency Funds Required: At least 10% of renovation costs held in escrow for unexpected expenses.
• Renovation Time Frame: Work must be completed within 12 months of closing.

Who is the HomeStyle® Renovation Loan For?

This program is ideal for:

1. Homebuyers:

• People buying a fixer-upper who want funds for immediate improvements.