HomeStyle Renovation loans. Finance an eligible home and its next chapter.

HomeStyle can finance a wide range of eligible permanent improvements, including repairs, remodeling and certain upgrades that are not limited to essential repairs. The work must meet program requirements and be accepted by the lender. A full teardown and reconstruction is outside HomeStyle’s scope.

• Describe the proposed changes to the kitchen, bathrooms, systems, exterior or layout.
• Identify structural work and any permits or design professionals involved.
• Separate movable furnishings and personal purchases from permanent improvements.
• Disclose planned changes in use or unit count before requesting an appraisal.

An improvement being allowed by Fannie Mae does not guarantee that every lender will finance it. Ask about lender-specific project limits and contractor requirements before paying a nonrefundable deposit.

Fannie Mae permits eligible one- to four-unit principal residences, one-unit second homes and one-unit investment properties under HomeStyle. Condos, manufactured homes and other property categories have additional conditions. A lender may support a narrower set of properties or occupancy types.

For a Florida condo, the unit renovation and the project review are separate. Association approvals, insurance, building condition and restrictions on common-element work can affect the transaction. Share the condo documents before treating the renovation budget as the only property hurdle.

Borrower approval still depends on documented income, credit, debts, assets and the applicable loan size. HomeStyle is not an alternative-income or no-documentation program. Self-employed borrowers should establish how their income qualifies before committing to the project.

The project budget is not automatically added dollar for dollar to the property’s market value. If the appraisal or eligible-cost calculation supports less financing than expected, the scope, borrower contribution or financing path may need to change.

HomeStyle has a renovation-cost ceiling tied to the applicable property-value calculation. Request the lender’s current worksheet instead of assuming the entire mortgage or every project expense qualifies. Closing charges, contingencies and draw fees must be allocated correctly.

Provide a signed or proposed itemized contract with labor, materials, permit costs, payment milestones and expected completion. The lender may verify licensing, insurance, experience and the contractor’s capacity to complete the job. A brief estimate that does not describe the work can delay the appraisal or credit review.

• Keep the contract, plans and appraisal scope consistent.
• Ask whether consultant services, inspections or a contingency reserve are required.
• Agree on the process for changes and cost overruns before work begins.
• Confirm permitted upfront disbursements rather than promising unrestricted access to the escrow.

Limited do-it-yourself work can be permitted under specific agency conditions, but lenders may disallow it. Do not base your budget on unpaid labor or reimbursement for your own work without written confirmation.

Project proceeds are held in a renovation escrow and released according to the lender’s procedure. Draw requests may require invoices, inspections and evidence that the completed work matches the approved plans. The lender also establishes the requirements for final completion and release of any remaining funds.

The Fannie Mae guide currently allows a renovation completion period of up to 15 months after the note date. This is an agency ceiling, not a promised construction schedule. A lender can set a shorter deadline, and your contract should allow for permits, materials and inspections without assuming extensions will be approved.

Ask what happens if the contractor stops work, a material changes or hidden damage is found. Document the contact for draw administration and the approval process for a revised scope. Keep reserves for costs that the loan cannot absorb.

Compare total costs and retained cash, not just the headline interest rate. A refinance changes the financing on the existing balance as well as the improvements. We can review the options with your current statement, project bid and intended occupancy.

Official references: HomeStyle Renovation requirements, property and borrower eligibility, and Fannie Mae FAQs.