A HomeStyle® Renovation mortgage gives you more flexibility to meet your borrowers' needs, the potential to increase purchase and refinance loan production and save repair-contingent deals.
Why choose Homestyle Renovation?
Homeowners are renovating like never before. With a HomeStyle Renovation loan, they’ll have funds for a wide range of renovation projects, from repairs and energy updates to landscaping and luxury upgrades. A HomeStyle Renovation loan can make the difference between a house and a dream home, or help restore an older home to its former glory.
Now you can give your customers the option to renovate and rehab a new or existing home by including financing in their conventional purchase or refinanced home loan. LTV is calculated taking the proposed project into account, giving them more purchasing power and more options to make their home their own.
Features and benefits
With standard pricing and conventional execution, loan funds can be delivered even before the project starts (subject to lender approval).
Use on any renovation project, including updating a bathroom, adding a mudroom, landscaping or replacing a roof, up to 97% LTV or 105% CLTV when paired with eligible Community Seconds™ financing.
Take the completed value of the project when determining the total loan amount, up to 75% of either the purchase price plus renovation costs or the “as-completed” appraised value, whichever is lower.
For manufactured housing, eligible renovation funds cap at the lesser of $50,000 or 50% of the “as-completed” appraised value.
Interest rates are typically lower than a home equity line of credit (HELOC), personal loan or credit cards.
Bundle the benefits
Combine HomeStyle Renovation with other Fannie Mae offerings to give borrowers more benefits:
- HomeStyle® Energy: If your borrower is planning on resiliency, energy, or water efficiency upgrades during renovation, bundle your HomeStyle Renovation loan with HomeStyle Energy to qualify for a $500 LLPA adjustment credit.
- HomeReady®: Our low down payment mortgage has lower rates and cancellable mortgage insurance (restrictions apply). When combined with HomeStyle Renovation, HomeReady makes financing renovation projects even more affordable.
Become an approved HomeStyle Renovation lender
Deliver renovation loans prior to project completion by becoming an approved HomeStyle Renovation lender. Get started by completing form 1000A or contact your Fannie Mae customer account team to learn more.
*Delivering loans post-completion does not require special approval.
HomeStyle Renovation Loan Process
|Form 1035||HomeStyle Renovation “Maximum Mortgage” worksheet|
|Form 1204||HomeStyle Renovation consumer tips|
|Form 3731 (Summary)||Multistate Renovation Loan Agreement - Fannie Mae Model Document|
|Form 3731 (PDF)||Multistate Renovation Loan Agreement - Fannie Mae Model Document|
|Form 3731 (Word)||Multistate Renovation Loan Agreement - Fannie Mae Model Document|
|Special Purpose Documents||Model legal documents developed for a special purpose|
|Riders and Addenda||A list of model riders and addenda to the security instrument.|
Housing stock is aging into disrepair, with the median age of a home nearing 40 years old.*
Meanwhile, new home construction is not keeping up with demand, as rising costs weigh on builders. With a HomeStyle Renovation mortgage, your buyers have more ways than ever to get the home they really want.
* 2016 American Community Survey, National Assn. of Home Builders