Fannie Mae – Renovation

HomeStyle Renovation:

This is a conventional mortgage that lets borrowers finance improvements, renovations or repairs to a home
at the time of purchase or as a refinance transaction—up to 75% of the as-completed appraised value of the property.*

Flexible

Purchase or refinance option for any renovation project such as design updates or improvements, and even renovating accessory units like in-law suites or basement apartments.

Affordable

Your borrowers can take advantage of competitive rates, which may be lower than a home equity line of credit (HELOC) or a personal loan.

Simple

Standard pricing and conventional execution. Loans can be delivered even before the project starts and eligible for R&W relief once completed.

FAQs

Can lenders use HomeStyle Renovation financing on a manufactured home?

Yes, manufactured housing is eligible for HomeStyle Renovation financing, up to the lesser of 50% of the as-completed value, or $50,000. The manufactured home must meet applicable Guidelines.  Contact us for details. 

Can an accessory unit be detached from the primary dwelling?

Yes, an accessory unit may be detached from the primary dwelling. All improvements related to accessory units must be in compliance with local and state codes and statutes. They also must meet the applicable Guidelines.  Contact us for details.  

Can landscaping costs be covered?

Yes, provided that the improvements are permanently affixed to the property.

Borrowers now have an easy and affordable option to finance home renovations.

*The limit on eligible renovation funds is up to 75% of the lesser of the purchase price plus renovation costs, or the “as-completed” appraised value for purchase transactions; and 75% of the “as-completed” appraised value for refinance transactions. For manufactured housing, the eligible renovation funds capped at the lesser of $50,000 or 50% of the “as-completed” appraised value. HomeStyle and HomeReady are registered trademarks of Fannie Mae.

 

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