HomeReady HomeStyle Guide

How Are Contractors Selected and Approved?

You choose the contractor(s). HomeReady® HomeStyle® requires one general contractor (specialty trades as needed). The lender verifies licensing, insurance, and line-item bids — a renovation consultant is required only in Alaska, California, Hawaii, and New York.

Get Pre-Approved Program Overview

You Select. The Lender Verifies.

HomeReady HomeStyle does not assign a contractor for you. Collect bids from licensed, insured pros whose scopes match the renovations you want financed on a 1-unit primary residence. The lender then confirms credentials and that costs stay inside the 75% purchase repair cap (or 50% for manufactured homes).

Unlike FHA Standard 203(k), there is no HUD consultant in most states. One GC coordinates the project, with specialty subs as needed — plans, permits, 10%/15% contingency, and the five-draw schedule still apply.

Ryan and Steve review bid packages early so weak insurance, vague line items, or unlicensed vendors do not stall DU Approve/Eligible underwriting after you are under contract.

Contractor Rules Snapshot

Who choosesYou (borrower)

Who approvesLender / underwriting

GC modelOne general contractor

Specialty tradesPermitted as needed

ConsultantAK, CA, HI, NY only

Must haveLicense + insurance

OccupancyPrimary residence only

What Makes a Bid Package Lender-Ready

Four items that keep HomeReady HomeStyle draws and appraisals moving.

Active license for the trade

State or local licensing appropriate to the work — roofing, electrical, general contractor, etc.

Liability and workers’ compensation

Insurance certificates that meet lender overlays and cover the project period.

Line-item costs

Materials and labor broken out so appraisers and inspectors can match progress to the five draws.

Timeline inside 15 months

Completion estimate that fits the HomeStyle window, plus contingency (10% min / 15% if utilities off).

HomeReady HomeStyle vs FHA Consultant Model

Topic	HomeReady HomeStyle	FHA Standard 203(k)
Who picks GC	Borrower	Borrower (consultant-managed)
Consultant	AK / CA / HI / NY only	HUD consultant required
Contractor count	One GC + specialty as needed	Per consultant write-up
Pools allowed	Yes	No

Keep Exploring

Draws, DIY rules, and document checklists for this program.

DIY Work

Why financed escrow cannot be DIY labor.

Fund Draws

Five draws, 10% holdback, and 1004D final.

Financed Improvements

Eligible repairs, pools, and escrow line items.

HomeStyle Contractors

Standard HomeStyle contractor approval guide.

Documents Required

Bid packages, insurance, and income docs.

HomeReady HomeStyle Hub

Full guidelines, calculator, and all 20 guides.

Frequently Asked Questions

Who chooses the contractor on HomeReady HomeStyle?

You select the contractor(s). The lender reviews licensing, insurance, and line-item bids. They do not typically assign a GC, but they can reject a package that fails guidelines.

Is a renovation consultant required?

Only in Alaska, California, Hawaii, and New York. Elsewhere the matrix does not require a consultant — you still need one general contractor, specialty trades as needed, and draw inspections.

Can I use multiple specialty contractors?

Yes. The program calls for one general contractor, with specialty contractors permitted as needed. Combined bids must match the after-improved appraisal plan and repair caps.

What if my preferred contractor is not licensed?

Financed escrow work needs licensed, insured contractors. Switch vendors or move that item outside the loan as personal cash work — Ryan and Steve flag this early on HomeReady HomeStyle files.

Need Help Vetting Your GC Package?

Ryan & Steve review HomeReady HomeStyle bids, insurance, and draw-ready scopes at Luminate Bank.

Get Pre-Approved Back to HomeReady HomeStyle

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.

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