Fannie Mae HomeStyle Loan

Fannie Mae's HomeStyle® Renovation Mortgage allows borrowers to include financing for home improvements in a purchase or refinance transaction of an existing home.

A HomeStyle® loan gives you the ability to take a home in as-is condition and customize it, modernize it, and update it to best fit your needs.

With the HomeStyle® loan, there's no second mortgage involved, no lingering HELOCs and no need to pay a second set of closing costs.  There's also no need to occupy the home you're rehabbing.  Fannie Mae allows the use of the HomeStyle® Renovation loan for vacation homes and investment properties.

HomeStyle® Renovation Loan Highlights 

  • With Fannie Mae's HomeStyle® Renovation, you use one loan to finance your home and its improvements.
  • Just about any type of renovation or repair is eligible, too, so long as the improved is permanently affixed to the home and adds value.
  • Eligible home improvement projects include remodeling of a kitchen or bathroom; installation and upgrading of landscaping; and replacement of home appliances, as examples.
  • You can also use the HomeStyle® mortgage for "luxury" home improvements such as the addition of a swimming pool or major landscaping.
  • When you apply for a HomeStyle® mortgage, you'll share with your lender the home improvements you plan to make.  Then, when your home is appraised as part of the mortgage approval process, your appraiser will assign a home value based on what your home will be worth after your upgrades are complete.
  • The LTV of your HomeStyle® loan will be based on your home's expected future value and not its value as of today.  This allows you to borrow more than your home is worth in order to finance your construction.
  • Renovations must be completed within 12 months and seller concessions are permitted.  This means that home sellers can pay your closing costs, if you remember to add it to your contract.
  • Seller concessions are allowed.


Getting Approved for a HomeStyle® Mortgage

The HomeStyle® mortgage is available via any Fannie Mae-approved mortgage lender.  However, you'll want to be sure you meet the program's minimum standards.

You'll also want to make sure you meet minimum down payment requirements:

  • All Fannie Mae guidelines apply.


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