HomeStyle Loans
What is a HomeStyle Renovation Loan?
The HomeStyle Renovation Loan from Fannie Mae lets you roll the cost of buying or refinancing a home together with renovation expenses. It’s designed to keep things simple if you want to take on a fixer-upper or upgrade the home you already own.
Key Benefits
Key benefits of HomeStyle Renovation Loans include:
- One loan that covers both the purchase (or refinance) and the renovation.
- Works for everything from smaller repairs to full kitchen or bathroom remodels, additions, outdoor projects, and even luxury updates.
- Interest rates are usually better than taking out a personal loan or line of credit.
- You can buy your own materials if you’d like to, while licensed contractors take care of the work.
- Available for different types of properties including single-family homes, condos, multi-units, second homes, and investment properties.
Eligibility Requirements
Borrower Requirements:
- A minimum credit score of 620 (higher scores get better terms)
- A debt-to-income ratio typically ≤ 45%
- A down payment:
- As low as 3% for primary residencies (with HomeReady program).
- 5-25% depending on property type and occupancy
Property Requirements:
- It must be a residential property (1-4 units).
- Renovations must be permanently affixed to the property.
- It cannot be used for teardowns/rebuilds
What Renovations are Allowed?
- Structural repairs
- Room additions
- Kitchen/bath remodels
- Energy efficiency upgrades (via HomeStyle Energy)
- Landscaping and luxury features (e.g., pools, outdoor kitchens)