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What is a HomeStyle Renovation loan?

Fannie Mae HomeStyle Renovation is a conventional mortgage that includes funds for eligible repairs or improvements. You can use it to buy a home that needs work or refinance a home you already own and include renovation costs. Instead of arranging a separate renovation loan, the mortgage and approved project are financed together.

The appraisal considers the home's expected value after the planned work is complete. That can open up possibilities when the home you want needs updates before it feels right for your family. It is still a mortgage with income, credit, property, and project requirements, and Amy will walk you through those pieces together.

Buy a home with potential, or improve the one you own

Already have a mortgage you would like to keep? Compare a home equity loan or HELOC before choosing to replace it.

What improvements can you finance?

HomeStyle supports a broad range of permanent improvements, such as a kitchen or bathroom remodel, repairs, replacement windows, roofing, or changes that make your home work better for everyday life. The scope and budget must be reviewed as part of the loan.

• There is no minimum renovation dollar amount under the supplied loanDepot guidelines.
• Improvements must be permanently attached to the property.
• A complete tear-down and reconstruction is not permitted. For a new build, explore custom construction financing.
• Structural repairs require a HUD consultant or an approved third-party inspection service. The same oversight applies when improvements exceed $75,000.

Which homes may qualify?

Eligible properties can include one- to four-unit primary residences, one-unit second homes, and one-unit investment properties. Eligible condos and modular homes may also qualify, subject to property and project review. The loanDepot guidelines provided for this program exclude manufactured homes, non-warrantable condos, and agricultural or income-producing properties.

Down payment and financing limits depend on occupancy, unit count, loan type, and whether the loan is high balance. A rental property and your own primary home will not have the same requirements.

Your down payment, credit, and mortgage insurance

Certain eligible one-unit, fixed-rate primary-home purchases can have down payments as low as 3%. For financing above 95%, at least one buyer generally must be a first-time homebuyer, unless the transaction meets the HomeReady combination rules. Additional restrictions apply, including limits on non-occupant borrowers at that financing level.

Credit and debt-to-income qualification depend on automated underwriting and applicable lender and mortgage-insurance requirements. Mortgage insurance is required above 80% loan-to-value. When all buyers are first-time homebuyers, at least one must complete qualifying homeownership education.

HomeStyle may be combined with HomeReady when both programs' requirements are met. Eligible down payment assistance must also be approved by loanDepot and fit the transaction.

How the renovation budget works

For a purchase, renovation costs may not exceed 75% of the lesser of the purchase price plus renovation costs or the as-completed appraised value. For a refinance, renovation costs may not exceed 75% of the as-completed appraised value. This is a limit on the renovation portion, not a promise that every project or total loan qualifies.

Your project also needs a contingency reserve of at least 10%, or more if required by the consultant or inspection service. This provides room in the budget for unexpected work. The loan amount cannot simply be increased after closing because renovation costs change, so a detailed proposal matters.

From your idea to the finished project

1. Review the home and your financing. Amy helps you compare the purchase or refinance plan, expected payment, and renovation scope.
2. Choose your contractor. loanDepot's renovation team reviews the contractor's qualifications. Plans, specifications, and a construction contract are required. Up to three specialized contractors are permitted; more than three requires a general contractor.
3. Appraise the completed vision. The appraiser uses the plans and specifications to estimate the home's as-completed value.
4. Close and complete the work. Under the provided loanDepot guidelines, renovations must be completed within six months of closing. Funds are released through approved draws with the required documentation and inspections.
5. Finish with a final inspection. Completion is documented before the final disbursement. Unused funds are handled under program rules rather than paid as unrestricted cash.

HomeStyle or FHA 203(k)?

Both can combine a mortgage and eligible renovations. HomeStyle is conventional financing and may include eligible second homes and one-unit investment properties. FHA 203(k) follows FHA financing and renovation rules. Your credit, property, project, down payment, and mortgage-insurance costs help determine which option fits.

For improvements focused on energy savings, you can also explore Energy Efficient Mortgages. We will compare the financing around your actual project.

HomeStyle Renovation questions

Program details reflect the supplied loanDepot HomeStyle Renovation guide dated May 14, 2026. Eligibility, property restrictions, and state-specific rules apply; Amy will confirm current requirements for your transaction.

Learn more in Fannie Mae's HomeStyle Renovation overview, or return to the Renovation Loan library.