HomeReady HomeStyle Guide

What Home Improvements Can Be Financed With a HomeReady® HomeStyle® Renovation Loan?

HomeReady® HomeStyle® funds structural and non-structural work — kitchens, baths, roofs, foundations, room additions, energy and accessibility upgrades, landscaping, appliances, mold and lead remediation, and swimming pools — with no minimum renovation amount and a 15-month completion window after closing.

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Eligible Repairs & Upgrades

Work must appear in your approved scope and support the as-completed appraisal. Contingency reserve is required at 10% (15% if utilities are off).

Structural & foundation

Load-bearing repairs, foundation work, framing corrections, and code-related structural fixes.

Kitchens & bathrooms

Cabinetry, countertops, fixtures, tile, layout changes, and full remodels.

Roofing & exterior

Roof replacement, siding, windows, doors, and weatherization.

Room additions

Square-footage increases when plans, permits, and bids support after-improved value.

Energy & accessibility

Insulation, efficient systems, ramps, wider doorways, and related modifications.

Landscaping & appliances

Eligible landscaping and appliances included in the approved renovation scope.

Swimming pools

Allowed under HomeStyle — unlike FHA 203(k), which does not permit new pools.

Mold & lead remediation

Environmental remediation when documented in the scope and completed within the draw period.

Contingency & PITI

10%/15% contingency reserve; up to 6 months PITI if the home is uninhabitable during work.

Repair Caps & Escrow Mechanics

There is no minimum renovation amount. On purchase, renovation costs cannot exceed 75% of the lesser of purchase price plus renovation costs or as-completed appraised value. Manufactured homes are capped at 50% of as-completed value.

The escrow can also fund architectural/engineering fees, third-party construction management, five draw inspections, final inspection (1004D), permits, title updates, and the draw administration fee (greater of 1.5% of repair costs or $500).

Renovations must be completed within 15 months after closing, with one general contractor (specialty trades as needed) and a consultant required only in Alaska, California, Hawaii, and New York.

Budget Snapshot

Min renovationNone

Purchase repair cap75% rule

Manufactured cap50% of as-completed

Contingency10% / 15% if utilities off

DrawsFive + final 1004D

Holdback10% per draw

Materials advanceUp to 50%

Completion15 months

HomeReady HomeStyle vs FHA 203(k) Scope

Feature	HomeReady HomeStyle	FHA 203(k)
Swimming pools	Allowed	New pools not permitted
Luxury finishes	Generally allowed	More restricted
Completion window	15 months	Typically 12 months (Standard)
Consultant	AK/CA/HI/NY only	Required for Standard 203(k)
Min down (primary)	3%	3.5%

Keep Exploring

Related HomeReady HomeStyle guides and comparison resources.

Luxury Improvements

Pools, high-end finishes, and what FHA 203(k) often blocks.

Eligible Homes

1-unit primary, manufactured, and PUD rules.

Buy and Renovate

Purchase plus rehab in one mortgage.

HomeStyle Improvements

Standard HomeStyle financed-improvement guide.

HomeReady HomeStyle Hub

Full guidelines, calculator, and all 20 guides.

FHA 203(k) Improvements

Compare what FHA rehab will and will not fund.

Frequently Asked Questions

Is there a minimum renovation amount?

No. HomeReady® HomeStyle® has no minimum renovation budget. Cosmetic updates and major structural work can both qualify when documented in the scope and supported by the after-improved appraisal.

Can I finance a swimming pool?

Yes. Swimming pools are allowed under HomeStyle renovation guidelines — a key difference from FHA 203(k), which does not permit new pools.

What is the maximum renovation budget?

On purchase, renovation costs cannot exceed 75% of the lesser of purchase price plus renovation costs or as-completed appraised value. Manufactured homes are capped at 50% of as-completed value.

What else can the renovation escrow include?

Labor, materials, architectural/engineering fees, construction management, five draw inspections, final 1004D, permits, title updates, contingency reserve, up to 6 months PITI if uninhabitable, and draw admin fee (greater of 1.5% of repair costs or $500).

Map Your Scope Before You Bid

Ryan & Steve size repair caps, contingency, and draw schedule against your contractor bids 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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