Loan program · Construction & Renovation
Fannie Mae HomeStyle Renovation
HomeStyle Renovation is Fannie Mae's conventional renovation program. It finances improvements based on the as completed value and is generally more flexible than FHA 203(k) on property type, occupancy and the kinds of improvements allowed.
Guidance by Manny
Who it is designed for
- Buyers who qualify for conventional financing and want to renovate
- Buyers of second homes, and investors where the program allows
- Homeowners planning improvements beyond FHA eligible scopes
Eligible occupancy types
- Primary residence
- Second home
- Investment property where guidelines allow
Down payment or equity
Conventional down payment tiers apply, calculated using total project cost or as completed value.
Major benefits
- Broader improvement eligibility than FHA 203(k)
- Conventional mortgage insurance that can generally be cancelled later
- Second home and, in some cases, investment property eligibility
Important considerations
- Conventional credit and debt ratio guidelines apply
- Contractor documentation and draw inspections are required
- Longer timeline than a standard purchase
How qualification generally works
- Conventional income, credit and asset review
- Contractor bids and scope of work
- As completed appraisal
Documents commonly requested
- Photo ID and Social Security number for each borrower
- Most recent pay stubs covering a full 30 day period, if you receive W2 wages
- W2s and/or federal tax returns for the most recent years requested
- Two months of asset statements for accounts used for down payment and reserves
- Current mortgage statement, homeowners insurance and property tax information on properties you own
- Explanations for large or non payroll deposits
- Contractor bids, license and insurance
- Detailed scope of work
Not sure this is the right mortgage?
Tell Manny what you're trying to accomplish. He can help you compare this program with other financing options that may fit your situation — your income and how it is documented, your credit and assets, the property and how you will use it, your timeline, and the guidelines that apply. Most borrowers have more than one workable path.
Frequently Asked Questions
Related programs and next steps
FHA 203(k) Renovation Loans
FHA financing that includes repair and improvement costs in the mortgage.
Learn more Construction & RenovationRenovation Loans
Finance the purchase or refinance plus the improvements in one mortgage.
Learn more CoreConventional Loans
The most widely used financing for primary homes, second homes and rentals.
Learn moreConsidering fannie mae homestyle renovation?
We will review your documents, compare the realistic options, and give you a written preapproval you can use with confidence. Nothing on this page is a commitment to lend.