HomeStyle® Renovation

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.