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HomeStyle Renovation Mortgage: What is it?

Looking for a Fannie Mae HomeSytle Renovation Loan? Joe Wagner will be glad to help! Give Joe Wagner a call at 612-327-4544. Ready to get started? Apply Here.


With the number of homes that are either bank owned or short sales that are available on the market, the Fannie Mae HomeStyle Renovation mortgage program is becoming a popular choice with home buyers. The HomeStyle Renovation loan is different than the Fannie Mae HomePath Loan.

HomeStyle Renovation Mortgage: What Is It?

The HomeStyle Renovation mortgage is a single-close loan that let’s you buy the home that may be in need of repairs. It is also possible to refinance the mortgage on an existing home and include the funds needed for repairs into the new mortgage. The loan amount for the HomeStyle Renovation mortgage is based on the “as-completed” value of the home rather than what the home is currently worth.

HomeStyle Renovation Loan Programs

When getting a HomeStyle Renovation mortgage, it is possible to get a 15 or 30 year fixed rate and also a 3/1, 5/1 and 7/1 adjustable rate. Standard mortgage insurance pricing applies to all HomeStyle Renovation loans – but the MI will be required to cover the as-completed value, not the as-is value of the property.

HomeStyle Renovation Loans Allow 2nd Mortgages

With the HomeStyle Renovation loan program, it is possible to get a 2nd mortgage such as a Community Seconds loan that go up to 105% of the value of the property. It is also possible to get a non-Community Seconds type of 2nd mortgage although there will be an increased fee when done.

HomeStyle Renovation Improvements: What Is Allowed?

There are very few limits on the type of improvements that can be made with the HomeStyle Renovation loan. The only requirements are that the improvements must permanently be attached tot he property and the improvements must add value to the property. Some simple examples of improvements that qualify include in-ground pools, decks, landscaping and fences.

HomeStyle Renovation Contractor Requirements

The HomeStyle Renovation loan program allows for both a DIY option or you can hire a contractor to perform the work. If you hire a contractor to perform the work, they must be licensed and registered. The contractor will submit all plans and specs to you and the lender for approval as well as to the appraiser who can then help determine the as-completed value of the home. There are special rules for DIY financing – so if you are interested in doing the work yourself, be sure to speak with your loan officer about the rules.

Fannie Mae HomeStyle Renovation Loan Facts


Have questions about a Fannie Mae HomeStyle Renovation Loan? Call Joe Wagner at 612-327-4544. It's his job to answer lending questions, so he is happy to help! We know you're busy, so feel free to complete the form below to be contacted by Joe Wagner.

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