Renovate. Rehab. Restore with HomeStyle® mortgages.
We know the way to home isn’t always a straight path. HomeStyle is a valuable resource for not only borrowers but also lenders. With flexible financing options for a wide range of home and energy improvements and guidance along the renovation journey, borrowers can transform a fixer-upper into a move-in–ready home that’s all their own.
Features and benefits for borrowers and lenders
With HomeStyle mortgages, flexible financing is just the beginning. We provide helpful resources for lenders to help simplify the mortgage process from a list of eligible energy improvements to a HomeStyle Renovation and Energy loan playbook.
Two HomeStyle mortgages. Numerous possibilities.
HomeStyle Renovation
HomeStyle Renovation offers financing for repairs and restoration, a mudroom addition, design upgrades, and even exterior improvements, such as landscaping.
HomeStyle Energy
This specialized loan helps borrowers get a comfortable, efficient, and resilient home. Borrowers can finance energy-efficient improvements to reduce utility costs, make improvements to protect against natural disasters, or pay off existing energy-related debt.
Get to know HomeStyle inside and out
HomeStyle Resources
HomeStyle Loan Lender Playbook helps simplify the mortgage process, providing guidance for originating and delivering HomeStyle Renovation and Energy loans.
HomeStyle Energy Eligibility outlines improvements and repairs that qualify for financing without requiring an energy report.
Maximum Mortgage Worksheet calculates the mortgage amount for a renovation or energy purchase or refinance transaction.
Special Lender Approval Form outlines requirements lenders need to meet to become approved to deliver HomeStyle Renovation loans prior to project completion.
The HomeStyle loan process: Support at every phase
Phase 1 – Preparation
- Borrower selects a contractor* and submits renovation plans to the lender.
- Lender reviews borrower’s documents to ensure the project meets all requirements. Some improvements may require a Home Energy Report.
- Lender orders an as-completed appraisal to assess maximum mortgage amount, check loan-to-value ratio, and calculate the loan amount.
Phase 2 – Renovation
- Lender prepares to close by checking whether improvement funds need to be escrowed or require a contingency reserve.
- Lender and borrower execute required documents at loan closing, including a Renovation Loan Agreement.
- Funds are placed into custodial account, and lender delivers the loan to Fannie Mae®.
- Lender services the loan, managing all project draws and overseeing the renovation process.
Phase 3 – Completion
- Lender receives the final draw request, initiating the last phase of lender oversight.
- Lender orders a final inspection, appraiser signs completion certificate, and lender provides it to Fannie Mae.
- Before funds are issued, lender must ensure a clear title and make sure no additional liens remain on the property.
- After project is completed, lenders can submit required documents to remove recourse.
- Lender closes the renovation escrow account and uses any remaining funds towards reducing the unpaid principal balance (UPB).
*Contractor subject to lender review. HomeStyle Energy does not have a contractor acceptance requirement. For DIY requirements, visit the Fannie Mae Selling Guide.
Fannie Mae’s HomeStyle is a game-changer for our correspondent lenders. It expands home inventory and choices for borrowers, covers upfront repair costs to prevent post-purchase financial strain, and lets borrowers finance crucial improvements using as-renovated equity. With HomeStyle, you’re not just lending money; you’re giving borrowers the power to transform their homes and lives.
Answers to frequently asked questions about HomeStyle
Explore more ways to home
Single-family Mortgage Products
Browse the entire suite of mortgage solutions from low down payment loans to down payment assistance programs.
HomeReady® Mortgage
As low as 3% down payment, a new $2,500 borrower credit, and enhanced best efforts commitment.
See how HomeReady is increasing access to affordable homeownership one benefit at a time.
