HomeStyle® Renovation Program Highlights:

• Finance the property and its improvements all in a single close loan, including up to 6 months of mortgage payments if the home cannot be occupied
• May be used for 1-to 4-unit primary residences, or 1-unit second homes/1-unit investment property
• May be used for luxury improvements, such as swimming pools
• Any permanent renovation that adds value to the property is eligible
• Allowed seller concessions up to 3%

What is a HomeStyle® Renovation Loan?

A FannieMae HomeStyle® Renovation loan is a single-close loan used to finance renovations for a 1- to 4-unit primary residence or a 1-unit second home or a 1-unit investment property. A single-close loan allows a borrower to combine their mortgage and renovation payments without needing an additional loan or second method of financing.

How Does a HomeStyle® Renovation Loan Work?

HomeStyle® Renovation loans are broken into 3 phases. The borrower shares their planned renovation improvements with the lender to ensure the project meets all requirements. When the home is appraised as part of the mortgage approval process, the appraiser bases the value off the projected worth of the finished property. This is used to confirm the borrower will receive enough money to finance both the existing property and the construction costs without the necessity of another loan. If necessary, the loan may also include financing for up to 6 months of mortgage payments if the home cannot be safely occupied.