HomeStyle Guide

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

HomeStyle typically funds repairs, system replacements, structural work, and remodels that add lasting value — from roofs and HVAC to kitchens, baths, flooring, and energy upgrades — with broader scope than many FHA 203(k) files allow.

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Commonly Financed Improvements

Eligible work must appear in your approved scope of work and support the after-improved appraisal.

Structural & foundation

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

Roof & exterior

Full roof replacement, siding, windows, doors, gutters, and weatherization.

Mechanical systems

HVAC, plumbing, electrical panel upgrades, and water heater replacement.

Kitchens & baths

Cabinetry, countertops, fixtures, tile, vanities, and layout reconfiguration.

Interior finishes

Flooring, drywall, paint, trim, and built-ins that add durable value.

Additions & conversions

Square-footage increases, garage conversions, and accessory space when permitted.

Accessibility & energy

Ramps, wider doorways, energy-efficient windows, insulation, and solar when allowed.

Swimming pools & spas

Allowed when part of an approved scope and supported by after-improved value.

Contingency reserve

Minimum 10% of repair costs (15% if utilities are off) for unexpected repairs — required by Fannie Mae guidelines.

What Underwriters Look For

Every line item in your scope must tie to value, habitability, or code compliance. Cosmetic-only upgrades with no habitability benefit may be questioned if they dominate the budget.

•Licensed, insured contractor bids with line-item detail
•Plans and permits for structural work or additions
•After-improved appraisal that supports purchase plus rehab
•Completion timeline the contractor can realistically hit
•Contingency reserve for cost overruns on larger scopes

Usually Limited or Excluded

HomeStyle allows a broad scope including swimming pools, but purely recreational or non-permanent items still face limits.

Standalone recreational structures
Sport courts, putting greens, and similar amenities may be restricted when they do not add standard appraised value.
Standalone luxury landscaping
Basic grading tied to drainage may qualify; extensive decorative hardscaping often does not.
Personal property
Furniture, appliances not permanently installed, and freestanding items are excluded.

HomeStyle vs. FHA 203(k) Improvement Scope

Improvement type	HomeStyle	FHA 203(k)
Roof / HVAC / systems	Typically eligible	Typically eligible
Kitchen / bath remodel	Typically eligible	Typically eligible
Room additions	Often eligible	Standard 203(k) only
Higher-end finishes	More flexible	More restricted
Pools / recreational	Allowed (pools, spas)	Excluded

Keep Exploring

Luxury Improvements

When higher-end finishes and upgrades can roll into the loan.

Eligible Home Types

Property types that can carry a HomeStyle renovation.

Who Qualifies for HomeStyle?

Credit, LTV, and underwriting basics.

What Improvements Are Allowed?

Cross-program comparison of eligible renovation work.

HomeStyle Program Hub

Full program overview and guides directory.

Can I Finance a Roof?

Roof-specific renovation loan guidance.

Frequently Asked Questions

Can I finance a new roof with HomeStyle?

Yes. Roof repair or full replacement is one of the most common HomeStyle improvements — especially when inspection flags aging shingles or active leaks that would block a standard conventional approval.

Are kitchen and bathroom remodels allowed?

Yes. Full kitchen and bath remodels — cabinets, countertops, fixtures, tile, and layout changes — typically qualify when they add lasting value and are documented in contractor bids.

Can HomeStyle pay for HVAC replacement?

Yes. Furnace, air conditioning, and full HVAC system replacement are eligible when tied to habitability and supported by the scope of work and appraisal.

Can I finance room additions?

Often yes. Additions that increase square footage may qualify when plans, permits, and contractor bids support the after-improved value — subject to LTV and lender review.

Match Your Wish List to HomeStyle Rules

Send your renovation scope and contractor bids — Ryan & Steve will confirm what rolls into the loan before you offer.

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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.

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