Fannie Mae HomeStyle® Renovation
Buy and renovate with a single conventional loan — one closing, one payment.
✓ DU Approve/Eligible required
✓ Pools allowed · 15-month completion
✓ Primary, second & investment properties
Conventional Rehab
Up to 97% LTV · $100k min loan
5 draws + final 1004D · consultant only in AK, CA, HI, NY
Eligible Loan Products
15-Year Fixed
20-Year Fixed
25-Year Fixed
30-Year Fixed
5/6 SOFR ARM
7/6 SOFR ARM
10/6 SOFR ARM
Maximum LTV
| Occupancy | Purchase | Rate-Term Refinance |
|---|---|---|
| Primary (HomeReady) | 97% | 97% |
| Primary (Standard) | 95% | 95% |
| Second Home | 90% | 90% |
| Investment | 85% | 85% |
What Can Be Financed?
Allowed Repairs
- Kitchen and bathroom remodels
- Roofing, siding, windows
- HVAC, plumbing, electrical
- Additions and ADUs
- Energy efficiency upgrades
Ineligible
- Luxury items (pools, outdoor kitchens)
- Work already completed
- Non-permanent structures
How the Draw Process Works
Contractor provides itemized bid
Appraisal based on after-improved value
Loan closes — rehab funds escrowed
Work begins — up to 5 draws
Inspections verify completed work
Final 1004D — project complete
Renovation Cost Breakdown
Repair costs + 10% contingency + draw admin fees + inspections + permits = total rehab escrow
Best Uses
Strong Fit
- Fixer-uppers with good bones
- Conventional borrowers avoiding FHA
- Investors adding value
Consider Alternatives
- Minor cosmetic updates (consider standard conventional)
- Need 6+ months (consider construction loan)
Mortgage Knowledge Center
HomeStyle Renovation Questions
What's the minimum down payment?
As low as 3% for HomeReady borrowers, 5% standard on primary residences.
Can I do the work myself?
No — licensed contractors are required for all renovation work.
How long do I have to complete renovations?
Work must be completed within 15 months of closing.