Fannie Mae · Conventional Renovation

Fannie Mae HomeStyle® Renovation

Purchase or rate/term refinance and finance renovations in one conventional mortgage — primary, second home, or investment property, sized on after-improved value with swimming pools allowed and a 15-month completion window.

DU Approve/Eligible required
Pools allowed · 15-month completion
Primary, second & investment

HomeReady eligible?

Need 97% LTV rehab on your primary home?

HomeReady HomeStyle pairs 3% down with full HomeStyle renovation — primary residence only, with reduced PMI and ~80% AMI income limits.

Purpose

A conventional renovation loan that lets borrowers purchase or refinance a home and finance renovations in one mortgage. Unlike FHA 203(k), HomeStyle can be used for primary residences, second homes, and investment properties.

Ryan and Steve run your file through Desktop Underwriter for an Approve/Eligible recommendation — manual underwriting is not permitted on HomeStyle.

At a Glance

Maximum LTV

Loan-to-value limits by occupancy and transaction type. PMI applies when LTV requires it under standard conventional rules.

Occupancy Purchase Rate/Term Refinance
Primary (HomeReady eligible)Up to 97%Up to 97%
Primary (standard owner-occupied)Up to 95% (2–4 unit & manufactured)Up to 95%
Second homeUp to 90%Up to 90%
Investment propertyUp to 85%Up to 75%

Eligible Property Types

Repair Limits

Purchase

Renovation costs may not exceed 75% of the lesser of purchase price plus renovation costs, or as-completed appraised value. No minimum renovation amount.

Refinance & Manufactured

Refinances: renovation costs cannot exceed 75% of as-completed appraised value.

Manufactured homes: maximum renovation costs equal 50% of as-completed appraised value.

What Can Be Financed?

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Types of Repairs Allowed

  • ✔
  • ✔
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  • ✔
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  • ✔

Consultant & Contractors

A renovation consultant is required only in Alaska, California, Hawaii, and New York. Otherwise, not required by the matrix.

One general contractor manages the project; specialty contractors are permitted when necessary. DIY work is not allowed in escrow.

Draw Schedule

  • • Five draws plus final inspection (1004D)
  • • 10% holdback per draw
  • • Initial material draw up to 50% of material costs
  • • 15-month completion after closing

Eligible Loan Products

Best Uses

HomeStyle only

Fannie Mae HomeStyle® Renovation Loan Calculator

Locked to Fannie Mae HomeStyle rules — occupancy-based LTV, $100,000 minimum loan, 75%/50% repair caps, contingency, draw admin fee, and product choices.

HomeStyle rules applied

  • • DU Approve/Eligible required
  • • $100,000 minimum loan amount
  • • 5 draws + final 1004D · 10% holdback
  • • 15-month completion window
  • • Consultant only in AK, CA, HI, NY
  • • One general contractor · no DIY in escrow
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Financed PITI ({Math.min(calc.pitiMonths, 6)} mo.)${pitiReserve.toLocaleString()}
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Total rehab escrow${(rehabEscrow + pitiReserve).toLocaleString()}
Principal & Interest${monthlyPI.toLocaleString()}
{monthlyPmi > 0 &&
PMI (estimated)${monthlyPmi.toLocaleString()}
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Property tax${monthlyTax.toLocaleString()}
Home insurance${monthlyInsurance.toLocaleString()}
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Total loan amount${totalLoan.toLocaleString()}
LTV vs. ARV{ltv.toFixed(1)}% (max %)
Max loan at % LTV${maxLoanByLTV.toLocaleString()}
Max repair cap ({(repairCapPct * 100).toFixed(0)}%)${maxRepairsAllowed.toLocaleString()}
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This calculator is for informational purposes only. Results are estimates and are not exact — they do not include all closing costs, prepaid interest, or escrow deposits. Contact us for a personalized quote.

HomeStyle is a registered trademark of Fannie Mae. All loans are subject to credit and property approval. Program guidelines, LTV limits, and pricing are subject to change without notice and may not be available in all areas. This website is not affiliated with or endorsed by Fannie Mae, HUD, or any government agency. Information is for educational purposes only and is not a commitment to lend.

Mortgage Knowledge Center

Common Fannie Mae HomeStyle® Renovation Questions

Deep-dive guides on what HomeStyle is, who qualifies, borrowing power, occupancy, contractors, fund draws, appraisals, timelines, documents, and more.

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Ready to buy and renovate with HomeStyle?

Ryan and Steve will review your property, contractor bids, and credit profile — then compare HomeStyle with FHA 203(k) and VA renovation so you pick the cleanest path.

(765) 450-8933 Get Started