Originating & Underwriting

HomeStyle Energy Mortgage

Help borrowers get a comfortable, efficient and resilient home

Whether they’re purchasing a home or refinancing their current one, borrowers can now make upgrades to reduce utility costs and improve the comfort and safety of their homes with Fannie Mae’s HomeStyle® Energy mortgage.

The older the home, the more likely borrowers will need or want to make upgrades to conserve energy, cut down utility costs, or make their home more resilient. 

They can finance the changes using a HomeStyle Energy mortgage during the purchase of a home or refinance of their current one.

Prevent damage from natural disasters

Finance features that protect your borrower’s home from a natural disaster, such as:

  • Storm surge barriers
  • Foundation retrofitting for earthquakes
  • Brush and tree removal in fire zones
  • Retaining walls
  • Radon remediation system installation

Bundle the benefits

Combine HomeStyle Energy with other Fannie Mae products to offer borrowers benefits like more flexibility and savings:

  • HomeStyle® Renovation: Use both HomeStyle loans together to maintain benefits like an LLPA credit and energy report waiver on weatherization improvements while funding additional projects that go beyond energy efficiency. 
  • HomeReady®: Our low down payment mortgage has lower rates and cancellable mortgage insurance (restrictions apply). Combine this mortgage with HomeStyle Energy to make financing upgrade projects even more affordable.

Solar Panels Video

Homeownership Education Update

To qualify for purchase loans with an LTV greater than 95%, homeownership education will be ​ required for at least one borrower, when all occupying borrowers are first-time homebuyers.  ​Learn more about homeownership education.​

Requirements, eligibility & other features

Maximum LTV (1-unit owner-occupied)
  • Up to 97% (See Fannie Mae’s Eligibility Matrix for specific details based on the loan transaction)
Financing Energy-Related Improvements
  • Up to 15% of “as completed” appraised property value
Occupancy & Property Eligibility
  • All one-to-four-unit existing properties
  • Manufactured housing, provided no structural changes
  • All occupancy types permitted
Covers Improvements to the Home’s Resiliency to Natural Disasters

Upgrades include:

  • Storm surge barriers
  • Foundation retrofitting for earthquakes
  • Hazardous brush and tree removal in fire zones
  • Retaining walls to address mud or water flows
Radon Remediation
  • Covers installation, no energy report required
Energy Report Waivers Available

No energy report required for:

  • Basic weatherization and water-efficient items up to $3,500
  • Water efficiency devices
  • Renewable energy sources including solar panels, wind power devices, geothermal systems
  • Environmental hazard damage repairs or resiliency improvements
Other Energy Related Financing
  • Could pay off entire PACE lien amounts (with purchase or refinance) or financing for prior-energy related improvements: up to 15% of property value (with refinance)
Maximum DTI Ratio
  • Per Desktop Underwriter®, or 45% for manually underwritten loans
  • May go to maximum of 38% DTI if DOE Home Energy Report scores 6 or higher (when requirements for 45% DTI are not met)