HomeReady + HomeStyle · Primary Residence Rehab

HomeReady® HomeStyle® Renovation

One conventional mortgage that pairs HomeReady's 3% down with HomeStyle renovation financing — purchase or limited cash-out refinance your primary home and roll rehab into a single note sized on after-improved value.

3% down · 97% LTV
Primary residence only
Reduced PMI · cancellable

Purpose

A conventional renovation loan combining Fannie Mae HomeReady (low down payment affordable housing) with Fannie Mae HomeStyle Renovation. Borrowers purchase or refinance a primary residence and finance renovations into one mortgage while benefiting from HomeReady's lower down payment, reduced mortgage insurance, and flexible income features.

Desktop Underwriter must return Approve/Eligible — manual underwriting is not permitted. Second homes and investment properties are not eligible under HomeReady.

At a Glance

Eligible Property Types

HomeReady eligibility rules apply to the property and borrower household.

Maximum LTV & Mortgage Insurance

LTV for eligible HomeReady borrowers

  • Purchase: Up to 97% LTV (3% down)
  • Limited cash-out refinance: Up to 97% LTV

Mortgage insurance

Required when LTV exceeds 80%. Standard conventional PMI applies with HomeReady's reduced coverage requirements. Mortgage insurance may be canceled once eligibility requirements are met.

Repair Limits

Purchase

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

Manufactured homes

Maximum renovation costs equal 50% of the as-completed appraised value.

What Can Be Financed?

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Eligible Repairs

  • ✔
  • ✔
  • ✔
  • ✔
  • ✔
  • ✔

Consultant & Contractors

Consultant required only in Alaska, California, Hawaii, and New York. Otherwise, not required by the matrix.

One general contractor manages the project; specialty contractors permitted as needed.

Draw Schedule

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

Eligible Loan Products

Additional HomeReady Benefits

When paired with HomeStyle Renovation, eligible HomeReady borrowers may receive:

Best Uses

HomeReady® HomeStyle® Renovation only

HomeReady® HomeStyle® Renovation Calculator

Locked to primary-residence HomeReady rules — 97% LTV, 3% down alerts, $100,000 minimum loan, 75%/50% repair caps, contingency, draw admin, consultant toggle, and financed PITI reserve.

Program locked on this page

  • • Primary residence · HomeReady on
  • • 97% LTV max · 3% down minimum
  • • $100,000 minimum loan amount
  • • 5 draws + final 1004D · 10% holdback
  • • 15-month completion window
  • • Consultant only in AK, CA, HI, NY
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Occupancy: Primary residence only · HomeReady: On (97% LTV / 3% down)
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Contingency ({(contingencyPct * 100).toFixed(0)}%)${contingency.toLocaleString()}
Draw admin fee${drawAdminFee.toLocaleString()}
5 draw inspections${drawInspections.toLocaleString()}
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Permit fees${calc.permitFees.toLocaleString()}
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Financed PITI ({Math.min(calc.pitiMonths, 6)} mo.)${pitiReserve.toLocaleString()}
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Total rehab escrow${(rehabEscrow + pitiReserve).toLocaleString()}
Principal & Interest${monthlyPI.toLocaleString()}
{monthlyPmi > 0 &&
PMI (HomeReady est.)${monthlyPmi.toLocaleString()}
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Property tax${monthlyTax.toLocaleString()}
Home insurance${monthlyInsurance.toLocaleString()}
{calc.hoa > 0 &&
HOA${calc.hoa.toLocaleString()}
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Total loan amount${totalLoan.toLocaleString()}
LTV vs. ARV{ltv.toFixed(1)}% (max 97%)
Max loan at 97% LTV${maxLoanByLTV.toLocaleString()}
Max repair cap ({(repairCapPct * 100).toFixed(0)}%)${maxRepairsAllowed.toLocaleString()}
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Down payment${downPayment.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.

HomeReady and HomeStyle are registered trademarks of Fannie Mae. All loans are subject to credit and property approval. Program guidelines, income limits, 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 HomeReady® HomeStyle® Renovation Questions

Deep-dive guides on eligibility, 3% down, income limits, credit, improvements, contractors, fund draws, FHA 203(k) comparison, and more — all for primary-residence buyers pairing HomeReady with HomeStyle.

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Ready to buy and renovate with 3% down?

Ryan and Steve will confirm your HomeReady AMI eligibility, size the rehab escrow, and compare this path with standard HomeStyle and FHA 203(k) before you write an offer.

(765) 450-8933 Get Started