How HomeStyle® Renovation Loans Work: Buy or Rebuild with One Mortgage

HomeStyle Renovation loans can help you buy a fixer upper or turn your current home into your dream home.

For buyers looking at homes that need work—or current homeowners dreaming of a remodel—the Fannie Mae HomeStyle® Renovation Loan offers a powerful, all-in-one financing option. Instead of taking out a separate loan or draining your savings, this program lets you roll the renovation costs into a single mortgage.

What Is a HomeStyle Renovation Loan?

The HomeStyle Renovation Loan allows you to purchase or refinance a home and include the renovation costs in the same loan. It’s a flexible mortgage that uses the after-improved value of the home to determine your borrowing power, making it ideal for both cosmetic and structural updates.

Who Can Use It?

• Homebuyers: Finance the purchase and the upgrades of a home in one step.

• Homeowners: Refinance your current mortgage and include renovation costs to improve your space without needing a second loan.

How It Works:

1. Get a Renovation Plan – Work with a licensed contractor to create a detailed scope of work and cost breakdown.

2. Loan Approval – The lender bases your loan amount on the future, post-renovation value of the home.

3. Closing – You close on the full amount (purchase or refinance + renovation funds).

4. Renovation Phase – Funds are disbursed in draws as the contractor completes the approved work.

   
   

What Can You Do with a HomeStyle Loan?

• Kitchen and bath remodels

• Roof and HVAC replacements

• Room additions or layout changes

• Energy efficiency upgrades

• Even luxury improvements like pools and outdoor kitchens

Why Choose HomeStyle?

• One mortgage, one payment

• Competitive interest rates

• Increased borrowing potential based on after-renovation value

• Available for primary residences, second homes, and investment properties

With the HomeStyle Renovation Loan, you don’t have to settle for a home that’s almost right—or delay updates because of upfront costs. This flexible solution helps you create your ideal home with affordable, long-term financing.