Homestyle Renovation Loan
Turn your fixer-upper into your dream home with a Fannie Mae HomeStyle® Renovation Loan. Whether you’re purchasing a property that needs significant repairs or refinancing your current home to fund improvements, this loan bundles your mortgage and renovation expenses into a single monthly payment.
HomeStyle® Renovation Loan Features & Benefits
The HomeStyle® Renovation loan offers unique advantages for homebuyers and homeowners alike:
All-in-One Financing
Purchase or refinance your home and fund renovations with just one loan and one monthly payment.
Flexible Renovation Options
From cosmetic updates to major remodels, finance almost any improvement that adds value to your home.
Competitive Terms
Fully amortizing fixed-rate loans available at competitive rates.
Minimal Out-of-Pocket Expenses
Draw up to 50% upfront for renovation materials—get started quickly without draining your savings.
Finance Temporary Housing Costs
Include up to six months of mortgage payments if your home is uninhabitable during renovations.
Low Down Payment
Options as low as 3% down for qualifying homebuyers.*
Types of Renovations You Can Finance
With HomeStyle®, your renovation possibilities are extensive. Renovations must be permanently affixed and add value to the home. Eligible improvements include:
Interior Remodeling
Kitchens, bathrooms, flooring, painting, and complete interior updates.
Home Additions
Build new rooms, accessory units, in-law suites, or basement apartments.
Outdoor and Luxury Features
Landscaping, outdoor kitchens, decks, patios, or even in-ground pools.
Structural Repairs
Roofing, foundation work, HVAC systems, plumbing, electrical upgrades, and more.
Energy Efficiency & Smart Upgrades
Energy-efficient windows, smart home technology, backup power generators, and battery storage solutions.
FAQs
Who Qualifies for a HomeStyle® Renovation Loan?
To qualify, you’ll need to meet certain criteria:
- Minimum Credit Score: Typically, a 620 minimum credit score.
- Property Types: Single-family homes, townhomes, condos, duplexes, multi-unit properties (up to four units), second homes, and one-unit investment homes.
- Down Payment Requirements:
- 3% down for first-time homebuyers or eligible HomeReady borrowers.
- 5% minimum down payment for most other borrowers.
- Higher down payments required for multi-unit properties, second homes, and investment properties.
- Renovation Project Approval: Lender-approved contractors and renovation plans, including detailed budgets and timelines.
What Are the Borrowing Limits?
Loan amounts are based on the home’s anticipated post-renovation value (“as-completed” appraisal):
- Purchase or Refinance: Borrow up to 75% of the home’s estimated appraised value after renovations.
- Manufactured Homes: Maximum of $50,000 or 50% of the appraised value after renovations.
Example:
If a home’s after-renovation appraised value is $200,000, you could finance up to $150,000 toward renovations and purchase costs combined (75% of $200,000).
What You Can Expect From Croghan
At Croghan, our mortgage experts provide personalized service and guidance throughout your renovation loan journey.
Local Expertise
Our specialists understand local property markets and renovation guidelines.
One-on-One Support
We assist with every step, from pre-approval through project completion.
Competitive Rates
Enjoy attractive interest rates tailored to your financial situation.
Make Your Dream Home a Reality
Whether you’re buying a fixer-upper or improving your current home, the HomeStyle® Renovation loan simplifies financing your project. Connect with Croghan today to see how easy—and affordable—renovating can be.
Important Legal Disclosures
*All loans subject to credit approval. Terms and conditions apply. Renovation projects require lender approval and adherence to Fannie Mae guidelines. Private mortgage insurance (PMI) required for down payments less than 20%, cancellable when equity thresholds are met.