![HomeStyle Renovation](/sites/g/files/koqyhd251/files/2024-03/homestyle-renovation.jpg)
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 Energy is the right option for your situation.
- 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