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HomeStyle Renovation Mortgage

The Fannie Mae HomeStyle® Renovation Mortgage was created to help consumers purchase homes that need work from the very beginning. With this type of mortgage, buyers can bundle the costs of purchasing a home with the expense of remodeling and make a single monthly mortgage payment. HomeStyle mortgages also aim to help lenders cope with “constrained housing supply and evolving borrower needs,” since they allow buyers to purchase homes they may not be able to buy without additional financial help.

What are the eligibility requirements?

While the HomeStyle mortgage can be used for any type of renovation, the borrower and the property must meet certain requirements.

The main eligibility requirements for Fannie Mae HomeStyle® Renovation Mortgages include:

Loan-to-value ratio limits

Credit and debt qualifications

Renovation specifications

Property types

Advantages of a Fannie Mae HomeStyle® Renovation Mortgage

Disadvantages of a Fannie Mae HomeStyle® Renovation Mortgage

Who is this loan best for?

Because HomeStyle mortgages are for homes that need repairs, these loans are best for people that can see past the ugly finishings, or even the structural problems, and see the potential in a home. They are also good for people that have the flexibility to wait up to six months for the renovations to be done before moving in.

Since these loans are conventional home loans, they are also best for homebuyers who can meet the basic credit and income requirements to qualify for a traditional mortgage.