What Is a HomeStyle Renovation Loan?
The Fannie Mae HomeStyle Renovation loan is a conventional mortgage that includes the cost of home improvements in a single loan. Unlike the FHA 203(k), HomeStyle is a conventional product — no FHA mortgage insurance, no FHA loan limits, and it works for primary residences, second homes, and investment properties.
Renovation costs can be up to 75% of the completed appraised value. The loan covers virtually any type of improvement: structural, cosmetic, landscaping, even luxury upgrades like pools and outdoor kitchens. Work must be completed within 12 months.
HomeStyle vs. 203(k): HomeStyle has no FHA insurance, covers investment properties and second homes, allows luxury improvements, and has a 12-month completion window (vs. 6 months). The trade-off is a higher credit score requirement (typically 620-680) and conventional PMI if under 20% down.
Who HomeStyle Is For
- Buyers who want a conventional renovation loan without FHA insurance
- Second home and investment property buyers who need to renovate
- Homeowners refinancing to renovate their current property
- Borrowers doing luxury improvements (pools, outdoor kitchens)
Key Features
Minimum 620 credit score (680+ for best pricing). Down payment as low as 3% for primary residence (with PMI). Renovation budget up to 75% of the as-completed value. 12-month completion window. Covers primary, second home, and 1-4 unit investment. Conventional PMI cancels at 80% LTV.