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Renovate

The conventional renovation loan, with fewer rules than FHA.

Fannie Mae's HomeStyle Renovation finances the purchase and the renovation in one conventional loan based on the after-repair value. No HUD consultant, no repair cap, luxury items allowed, and mortgage insurance that cancels at 20% equity.

Minimum down3% first-time, 5% others
Renovation budgetUp to 75% of after-repair value
Minimum credit620
Luxury itemsAllowed (pools, landscaping)
See if I qualifyCall (800) 511-3330
4.4 on Google · 214 reviewsNMLS 13988Licensed in 15 states + DC
Who it's for

Is the HomeStyle renovation purchase right for you?

  • Buyers with good credit who want to avoid FHA mortgage insurance
  • Anyone planning a pool, outdoor kitchen or high-end finishes
  • Buyers of second homes and investment properties that need work
  • Buyers whose project exceeds the limited 203k cap
How it works

Three steps from here to closing.

Plans and bids

Licensed contractor, written scope and budget. No government consultant required.

Appraisal on the after-repair value

Loan is sized on the finished value, up to a 75% renovation share.

Close, then renovate

Escrowed funds release in draws with inspections; work must finish within 12 to 15 months.

What you'll need

Requirements at a glance.

  • Credit score of 620 or higher
  • Down payment of 3% (first-time) or 5%, 10% for second homes, 15% to 25% for rentals
  • Licensed contractor with a written bid; some do-it-yourself work allowed up to 10%
  • Renovation cost up to 75% of the after-repair value
  • Work completed within 12 to 15 months of closing
Straight talk

The upside, and what to weigh.

Why people choose it

  • No HUD consultant, no repair cap, luxury improvements allowed
  • Mortgage insurance cancels at 20% equity
  • Works for second homes and rentals

Things to consider

  • Higher credit floor than FHA 203k
  • Contractor approval and draw inspections still apply
Common questions

Asked on almost every first call.

HomeStyle or 203k?

Above about a 680 score, HomeStyle usually costs less over time and allows more. Below that, or with a small down payment, 203k is often easier.

Can I do some work myself?

Yes, up to 10% of the after-repair value on a primary residence, with lender approval.

What about a pool?

Allowed. 203k does not permit it.