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HomeStyle Renovation

HomeStyle Renovation

Make the improvements that make a home your own.

A HomeStyle® Renovation mortgage can be a cost-effective way to make upgrades and repairs when you buy or refinance a home. It provides a single loan — with a single monthly payment — that includes both your mortgage and financing for any new improvements. As a next step, talk to a lender to understand HomeStyle Renovation is the right option for your situation.

What kind of renovations qualify?

With a HomeStyle® Renovation loan, you can finance improvements to your home. Eligible upgrades include:

  • Kitchen and bathroom updates.
  • Home additions, like in-law suites and basement apartments.
  • Window upgrades.
  • HVAC system replacement.
  • Backup power generators and battery walls.
  • Smart energy devices.
  • Natural disaster resiliency projects.

Benefits of HomeStyle Renovation

  • Ability to start projects sooner with no out-of-pocket spending — draw up to 50% of funds upfront for material costs.
  • Down payment as low as 3% for first-time homebuyers or when combining HomeStyle Renovation with a HomeReady® mortgage.
  • Cancelable mortgage insurance and potentially lower interest rates, compared to home equity lines of credit or a second mortgage.
  • Flexibility to use HomeStyle Renovation for different projects, such as updates to an older home, extensive design improvements, and even additional living spaces.
  • Potential home equity created by the renovations.

Requirements

A HomeStyle Renovation loan must be applied to:

  • An existing home, not new construction.
  • A property that meets occupancy and property restrictions.
  • A home purchase or limited cash-out refinance — no cash-out refinance option.
  • A property with hazard insurance in effect at closing, covering the completed value of the home.
  • Renovations permanently affixed to the property and compliant with state and local laws and building codes.

Coverage

The amount covered by your HomeStyle Renovation loan depends on your scenario:

Home purchase

Covers 75% of the lesser of:

  • The purchase price of the home + renovation costs, or
  • The “as completed” appraised value of the home with renovations

Home refinance

Covers 75% of the “as completed” appraised value of the home with renovations

Manufactured home

Covers the lesser of

  • $50,000, or
  • 50% of the “as completed” appraised value of the home with renovations

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