HomeStyle® requires 5% down standard on primary purchases; eligible HomeReady borrowers can put 3%. See cash-to-close for second homes, investments, gifts, and PMI.
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Down Payment
Standard primary HomeStyle purchases require a 5% minimum down payment (95% LTV). Eligible HomeReady borrowers can put as little as 3% down — second homes and investment properties need more equity against after-improved value.
Minimums are educational — credit, LTV, property type, and lender overlays can raise cash required.
Renovation funds typically go into escrow at closing — you are not wiring the full rehab budget as a separate check to the contractor on day one. Your bring-to-close cash is mainly equity, closing costs, and any reserves required after closing.
On primary HomeStyle loans under 20% equity, conventional PMI applies. Unlike FHA MIP, PMI can often be canceled once you reach the required equity milestones through paydown or appreciation after renovations complete.
Related guides on borrowing power, gifts, and purchase-plus-rehab structure.
Ryan & Steve will size down payment, closing costs, and reserves for your occupancy and rehab budget before you offer.
HomeStyle is a registered trademark of Fannie Mae. All loans are subject to credit and property approval. Program guidelines, 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.