One conventional mortgage that pairs HomeReady's 3% down with HomeStyle renovation financing — purchase or limited cash-out refinance your primary home and roll rehab into a single note sized on after-improved value.
Affordable rehab path
97% LTV · 3% down · $100k min
Pools allowed · 15-month completion · DU Approve/Eligible only
A conventional renovation loan combining Fannie Mae HomeReady (low down payment affordable housing) with Fannie Mae HomeStyle Renovation. Borrowers purchase or refinance a primary residence and finance renovations into one mortgage while benefiting from HomeReady's lower down payment, reduced mortgage insurance, and flexible income features.
Desktop Underwriter must return Approve/Eligible — manual underwriting is not permitted. Second homes and investment properties are not eligible under HomeReady.
HomeReady eligibility rules apply to the property and borrower household.
1-unit primary residence
Multiwide manufactured homes (1-unit)
PUDs (planned unit developments)
Required when LTV exceeds 80%. Standard conventional PMI applies with HomeReady's reduced coverage requirements. Mortgage insurance may be canceled once eligibility requirements are met.
Renovation costs cannot exceed 75% of the lesser of purchase price plus renovation costs, or as-completed appraised value. No minimum renovation amount.
Maximum renovation costs equal 50% of the as-completed appraised value.
Consultant required only in Alaska, California, Hawaii, and New York. Otherwise, not required by the matrix.
One general contractor manages the project; specialty contractors permitted as needed.
When paired with HomeStyle Renovation, eligible HomeReady borrowers may receive:
Keep more cash for moving and reserves after closing.
Lower mortgage insurance cost vs. standard conventional at the same LTV.
PMI can come off once equity milestones are met — unlike FHA MIP on many loans.
Approved courses satisfy first-time buyer requirements when LTV exceeds 95%.
HomeReady pricing may beat standard conventional for income-eligible files.
Household income generally capped at 80% of area median income — unless the property sits in an eligible census tract without an income cap.
HomeReady® HomeStyle® Renovation only
Locked to primary-residence HomeReady rules — 97% LTV, 3% down alerts, $100,000 minimum loan, 75%/50% repair caps, contingency, draw admin, consultant toggle, and financed PITI reserve.
Program locked on this page
$8,400 down
Estimated Monthly Payment
$2,873
Rehab escrow breakdown
This calculator is for informational purposes only. Results are estimates and are not exact — they do not include all closing costs, prepaid interest, or escrow deposits. Contact us for a personalized quote.
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.
Mortgage Knowledge Center
Deep-dive guides on eligibility, 3% down, income limits, credit, improvements, contractors, fund draws, FHA 203(k) comparison, and more — all for primary-residence buyers pairing HomeReady with HomeStyle.
Ryan and Steve will confirm your HomeReady AMI eligibility, size the rehab escrow, and compare this path with standard HomeStyle and FHA 203(k) before you write an offer.