Yes. That is the core purpose of HomeReady® HomeStyle® — purchase (or limited cash-out refinance) a primary residence and finance eligible renovations into one conventional mortgage, with up to 97% LTV and HomeReady affordable-housing benefits for qualifying borrowers.
Instead of buying with a standard mortgage and financing repairs later with a HELOC or cash, HomeReady HomeStyle rolls purchase price and renovation costs into a single note sized on the as-completed (after-improved) value — while keeping HomeReady's 3% down and reduced PMI features.
Eligible transactions are purchase and limited cash-out refinance. Occupancy is primary residence only. Underwriting requires Desktop Underwriter Approve/Eligible — manual underwriting is not permitted. Minimum loan amount is $100,000; maximum follows FHFA conforming limits.
Ryan and Steve coordinate the contractor bid, contingency reserve, and after-improved appraisal so your offer on a fixer-upper closes as one clean file at Luminate Bank.
From offer to final draw — what happens at each stage.
Confirm ~80% AMI eligibility (or census-tract exception), credit path to DU Approve/Eligible, and 3% down cash-to-close before you shop distressed listings.
Lock a contractor bid, size contingency (10%/15%), and order the as-completed appraisal so purchase plus rehab fit the 75%/50% repair caps.
One mortgage funds at closing. Renovation dollars sit in escrow — not in your checking account — until draws are approved.
Five draws plus final 1004D, 10% holdback per draw, up to 50% materials advance. Finish within 15 months; unused contingency applies to principal (or reimburses cash-funded reserves).
| Approach | Cash at closing | Rehab funding |
|---|---|---|
| HomeReady HomeStyle | As little as 3% down | Inside the same mortgage |
| Buy now, renovate later | Down payment + cash for repairs | HELOC, cash, or second loan |
| FHA 203(k) | 3.5% down | One loan — different MI & scope rules |
Related HomeReady HomeStyle guides and sister purchase-plus-rehab paths.
Scope of work, repair caps, and escrow line items.
1-unit primary, manufactured, and PUD rules.
3% down on purchase-plus-rehab for eligible borrowers.
Standard HomeStyle purchase-plus-rehab path.
Compare FHA purchase-plus-rehab timing and MIP.
Full guidelines, calculator, and all 20 guides.
Yes. HomeReady® HomeStyle® lets eligible borrowers purchase a primary residence and finance renovations into a single conventional mortgage sized on after-improved value, with as little as 3% down when AMI and DU Approve/Eligible requirements are met.
Yes. Limited cash-out (rate/term) refinance with renovation escrow is eligible — still primary residence only, up to 97% LTV for qualifying HomeReady borrowers.
After closing, funds are held in renovation escrow and released through draws as work is completed and inspected. Completions must finish within 15 months after closing.
The after-improved (as-completed) appraisal is central — it supports both the purchase price and the renovation budget so one loan covers both.
Ryan & Steve structure purchase-plus-rehab HomeReady HomeStyle files with clear draw timelines at Luminate Bank.
HomeReady and HomeStyle are registered trademarks of Fannie Mae. All loans are subject to credit and property approval. Program guidelines, income limits, LTV limits, and pricing are subject to change without notice and may not be available in all areas. This website is not affiliated with or endorsed by Fannie Mae, HUD, or any government agency. Information is for educational purposes only and is not a commitment to lend.