Maximum LTV/CLTV/and HCTLV is 97% for 1-unit, principal residence, purchase and limited cash-out refinance transactions.
Eligible renovation funds are limited to 75% of the purchase price plus renovation costs, or the “as-completed” appraised value for purchase transactions; and 75% of the “as-completed” appraised value for refinance transactions, whichever is less.
Manufactured housing is eligible with HomeStyle Renovation, with the eligible renovation funds capped at the lesser of $50,000 or 50% of the “as-completed” appraised value.
Lenders may release material draws at the beginning of the project for the purpose of acquiring materials that are identified in the project estimate - up to 50% of the total up-front material costs. A portion of this 50% may be used to pay expenses associated with architect fees, design, and permits.
For LTVs > 95%, on purchase transactions, the borrower must be a first-time homebuyer unless combined with HomeReady®; for limited cash-out refinance transactions, the loan must be owned or securitized by Fannie Mae.
For purchase transactions with LTV, CLTV, or HCLTV > 95%, if ALL occupying borrowers are first-time homebuyers, then at least one borrower must complete the Framework® online education program, regardless of the product chosen.
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®: 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.
HomeStyle Product Matrix HomeStyle FAQs
Special Lender Approval Form Homestyle Renovation Maximum Mortgage Worksheet
Homestyle Renovation Consumer Tips Multistate Renovation Loan Agreement - Summary
Multistate Renovation Loan Agreement - PDF Multistate Renovation Loan Agreement - Word
Special Purpose Documents Riders and Addenda
Income Eligibility - Area Median Income Lookup Tool Area Median Lookup Tool Tips
Education Requirement Education Requirement FAQs
Framework Homeownership Education Course Homeownership & Housing Counseling FAQs
Certificate of Completion of Housing Counseling (Form 1017)