Renovation Loans

Have you looked at a home in a neighborhood you love, that has the perfect layout, or the spacious yard you’ve been wanting? But it needs updates or major repairs, and you’re not sure you can afford to make those changes after you buy.

The HomeStyle Renovation Mortgage

You might even be living in a home you love that needs repairs because of a natural disaster or a few updates to accommodate your growing family. But the high interest rate for a home equity line of credit or second mortgage puts renovation costs out of reach.

Well, you’re not alone. Many home buyers and owners can see a home’s potential but aren’t sure how to pay for the renovations. A HomeStyle® Renovation mortgage from Fannie Mae could be the solution.

With a HomeStyle Renovation loan, eligible home buyers and owners can renovate a home to fit their needs and personal style with just one loan that covers the mortgage and improvements. It’s also important to mention that the renovations you’ll make have the potential to create equity in your home right away.

How does it work?

When you buy or refinance a home, the HomeStyle Renovation program allows you to finance improvements at the following loan-to-value (LTV) ratios:

  • Purchase: Up to 95% of value after improvements (owner-occupied only).
  • Refinance: Up to 95% of value after improvements (owner-occupied only).
  • Investment properties are also eligible: Purchase up to 80% LTV and refinance up to 75% LTV.

This type of financing can be a more cost-effective way to renovate your home, since it combines the cost of the home and renovations into one conventional mortgage.

The HomeStyle Renovation mortgage also addresses some common financial challenges with purchasing or remodeling a home by offering:


  • If you’re a first-time home buyer or combining HomeStyle Renovation with a HomeReady mortgage, your down payment can be as low as 3%.
  • You can also take advantage of cancelable mortgage insurance and today’s competitive interest rates, which may be lower than a home equity line of credit or personal loan.


  • HomeStyle Renovation can be used for any renovation project such as updates to an older home, extensive design improvements, swimming pool construction, and even to build or renovate additional living spaces like in-law suites and basement apartments.
  • You can also benefit from upfront draws (this is how contractors get paid for things like permits and architect’s fees) that could help your projects start sooner without you having to spend out-of-pocket.


  • Renovation funds get bundled into your mortgage under one loan, so you only make one monthly payment.
We can help

You can contact us any time for details and to see if you qualify for a HomeStyle Renovation mortgage. If it’s not the best solution for you, we offer many other affordable financing options. Always compare and shop around for the mortgage that works best for your financial situation.

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