HomeStyle Renovation Loans

Have you found your dream home, in a dream neighborhood with a dream yard, but with an outdated kitchen or other rooms sorely in need of updating? Or maybe you already own a home and want to renovate it, make repairs, or add on to make room for your growing family.

In either case, options like a home equity loan or second mortgage may give you pause due to high interest rates. Luckily, these aren’t the only options for financing improvements to a new home or the one you currently live in. At Popish Mortgage Group, we’re familiar with another option you may not know about: the HomeStyle Renovation loan from Fannie Mae.

What is a HomeStyle Renovation loan?

A HomeStyle Renovation loan (also called a HomeStyle Renovation mortgage) enables qualified homeowners and homebuyers to finance renovations to their property, with total allowable renovation costs depending on the future “as-completed” value. The loan combines the cost of the home and the renovations into a single-close mortgage (or a refinance if you already own the home you want to improve). This effectively turns what would be two separate payments into a single one, typically with a lower overall interest rate.

Benefits of a HomeStyle loan

Why might a homeowner or prospective buyer want to take out a HomeStyle Renovation loan as opposed to other financing methods? Here are the main advantages:


Both down payments and interest rates tend to be lower for a HomeStyle loan than for alternatives such as a second mortgage or home equity loan. While the specific figures will vary, interest rates are usually close to normal market rate, making this loan more affordable than other options. With a HomeStyle loan, you can also avoid the additional fees and closing costs of a second mortgage. Finally, the HomeStyle Renovation loan makes things simpler than other financing options, as your renovation costs and mortgage are rolled into a single mortgage with only one monthly payment.


Both the loan terms and the coverage of a HomeStyle Renovation loan are flexible. These loans can be 15-year or 30-year fixed-rate mortgages, or they can be taken out as adjustable rate mortgages. The types of renovations that are covered are also fairly broad. While clear needs such as electrical updates and roof repairs are covered by a HomeStyle loan, so are kitchen renovations, design improvements, and even additional living spaces.

What are the requirements?

A HomeStyle Renovation loan can be used for single-family primary residences, condos or townhomes (for either the owner/occupant or as an investment property), or second homes. Manufactured homes, including mobile homes and tiny houses, are not eligible. As for borrowers, homebuyers, investors, nonprofit organizations, and local government agencies can all qualify for a HomeStyle loan.

According to Fannie Mae, renovations to be covered by the HomeStyle loan must first be approved to ensure cost-effectiveness, and this may entail providing necessary plans before the loan can be approved. Additionally, the renovations must be carried out by approved architects and contractors.

Popish Mortgage Group: Approved Lender for HomeStyle Renovation Loans

At Popish Mortgage Group, we’ve helped many homeowners and first-time buyers finance their dream homes and their dream renovations. When we recommend a HomeStyle Renovation loan, we get to do both, and we can confidently say that a HomeStyle loan is a solid option for many folks who might otherwise put off renovations for years—or never get to them at all. If you’re looking to finance a home renovation and you think a HomeStyle might be right for you, contact Popish Mortgage Group today!

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