HomeStyle® Renovation Loan

A Fannie Mae HomeStyle® Renovation Loan can help you realize your ideal home. This product rolls two loans into one—so you can repair, improve or create the house you desire.

The loans are meant to offer a “convenient and economical” way for homeowners, homebuyers and investors to finance minor or moderate home improvements through a single-close first mortgage or refinance—rather than having to apply for a second mortgage, home equity line of credit or other costlier finance options, according to Fannie Mae. The loan amount is based on the future “as-completed” value of the property once the repairs or renovations are performed, rather than its existing present value.

A HomeStyle Renovation Loan has many advantages. During a home purchase or refinance, you might face the need for repairs or the desire to remodel. In the past, a second home loan or other lines of credit would cover these looming costs. With a HomeStyle Renovation Loan (with 5 percent down), the lender gives you a better option – rolling the money to finance (or refinance) the house and complete repairs and upgrades into a single home loan. This method can free you from certain fees and processing costs. When adding up the advantages, the answer usually equals one:

HomeStyle Renovation Benefits

  • One loan amount
  • One interest rate
  • One monthly payment
  • One “as-completed” value
  • One round of closing costs

HomeStyle funding can be a great solution for homeowners buying or refinancing older properties in established neighborhoods. Sometimes these well-loved homes need repairs and updating to reach their full potential. With these funds, customers with vision can finance their ideas for a modernized home.

There are many ways that customers can benefit from these opportunities. A longtime owner might pay for a bedroom remodeling as he/she refinances. A bargain hunter or investor might finance the restoration of an outdated property to a higher standard. HomeStyle Renovation Loans finance any “value-adding” improvements. Wherever a homeowner can imagine improvements, a HomeStyle is a possible path to make it happen.

HomeStyle Renovation Loan fixed rate and adjustable rate opportunities are available to fix or upgrade the structure of your home. Others focus on cosmetic upgrades, such as remodeling. The areas of improvement must be attached to the structure and add value.

Possible Renovations

  • Interior and exterior renovations
  • Fences
  • Decks
  • Landscaping
  • In-ground pools
  • Cosmetic updates like new flooring
  • Structural changes like removing a load-bearing wall
  • Energy efficient updates like solar power
  • Plumbing and electrical

Possible Renovation Loan Expenses

  • Architects
  • Designers
  • Engineers
  • Contractors
  • Materials & Labor
  • Inspections
  • Permit Fees


Not all lenders are qualified to offer a HomeStyle Renovation Loan. Lenders must be approved by Fannie Mae, meet certain financial and operational requirements and have at least two years’ experience originating and servicing renovation mortgages in the past five years. Each lender’s application process is different; however with Jeff Berman, as a borrower you can expect these steps:

  • Pre-qualification – Borrowers receive a pre-qualification letter with rough loan estimates.
  • Pre-Approval – Borrowers supply all necessary documents to verify the information given during pre-qualification.
  • Closing – Lenders assess the documents given during pre-approval, finalize the loan approval, and issue the loan.

Not every property or customer can join this renovation loan program. There are eligibility rules based on size and other factors. To learn more about financing renovations for your new or current home contact Jeff Berman “The Mortgage Go To Guy”, at 214-989-7700 or complete the form below and ask how you might be able to use a HomeStyle Renovation Loan.

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