HomeStyle® is Fannie Mae's conventional renovation mortgage for purchase or rate/term limited cash-out refinance on primary, second, and investment properties — one loan for the home and eligible improvements, sized on after-improved value. Underwriting requires DU Approve/Eligible; manual underwriting is not permitted.
A standard mortgage funds the purchase price. HomeStyle adds a renovation component: eligible repair and upgrade costs roll into the same conventional note, and the lender bases qualification partly on what the home will be worth when work is done.
After closing, renovation dollars typically sit in escrow. Licensed contractors are paid as inspections confirm progress — you do not receive the full rehab budget as cash at the closing table.
Ryan and Steve compare HomeStyle with FHA 203(k) and VA renovation before you write a rehab-heavy offer so the program matches your credit, occupancy, and scope of work.
Four structural differences that matter when you are buying a fixer-upper.
Purchase price (or refi payoff) plus eligible renovation costs fit into one conventional loan — subject to LTV limits on after-improved value.
The appraiser values the property as if renovations are complete, which can unlock more borrowing power on distressed listings.
Improvement dollars are held and released in draws as work passes inspection — protecting you and the lender.
Contractor bids, plans for larger projects, and a completion timeline are part of underwriting — not required on a plain conventional purchase.
| Feature | Standard conventional | HomeStyle | FHA 203(k) |
|---|---|---|---|
| Renovation funds | Not included | Included in one loan | Included in one loan |
| Appraisal basis | As-is value | After-improved value | After-improved value |
| Mortgage insurance | PMI if under 20% down | PMI — cancellable | MIP — often longer term |
| Improvement scope | N/A | Broad conventional scope | HUD-defined scope |
Related HomeStyle guides and renovation programs to compare before you apply.
Credit, LTV, occupancy, and underwriting basics for conventional rehab.
Which properties can use HomeStyle — SFR, condo, multi-unit, and more.
Typical repairs and upgrades that roll into the rehab escrow.
When higher-end finishes and upgrades can be included.
Full overview, benefits, and comparison with FHA 203(k).
Compare HomeStyle with FHA 203(k) and VA renovation options.
When FHA rehab may fit better than conventional HomeStyle.
HomeStyle is a Fannie Mae conventional renovation mortgage — it still closes as a conventional loan with PMI rules, but it adds a rehab escrow and after-improved appraisal so purchase price plus eligible improvements combine into one note.
Yes. HomeStyle supports limited cash-out and rate-and-term refinance scenarios when you want to roll renovations into your existing mortgage, subject to equity, LTV, and scope guidelines.
HomeStyle does not use the FHA HUD consultant model. A renovation consultant is required only in Alaska, California, Hawaii, and New York — otherwise not required. Lenders still require contractor bids, plans for larger scopes, and draw inspections before releasing escrow funds.
HomeStyle is a single close purchase-or-refinance with renovation escrow — not a separate construction-to-permanent two-step process. Funds release as work completes rather than on a full construction draw schedule.
Ryan & Steve will review your property, scope of work, and credit profile against HomeStyle guidelines at Luminate Bank.
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.