HomeStyle Renovation
HomeStyle® Renovation unlocks financing options that help borrowers tap into a home’s true potential. Lenders can take advantage of resources that help borrower’s meet their needs as they consider purchasing fixer-uppers.
Whether your borrowers are just starting their homebuying search or ready to refinance and remodel, HomeStyle Renovation can pave a new way to home.
Covering projects and possibilities
![saw and hammer](/https/singlefamily.fanniemae.com/sites/g/files/koqyhd181/files/styles/medium/public/2024-06/icon_repairs2x.png?h=52605a11&itok=PfDgNCbE)
Repairs and Restoration
roofing, plumbing, painting
![house outline](/https/singlefamily.fanniemae.com/sites/g/files/koqyhd181/files/styles/medium/public/2024-06/icon_energy2x.png?h=52605a11&itok=Mdv493uz)
Accessory Dwelling Units
mudrooms, in-law suites, basement apartments
![shovel](/https/singlefamily.fanniemae.com/sites/g/files/koqyhd181/files/styles/medium/public/2024-06/icon_landscaping2x.png?h=52605a11&itok=gHmxL2o-)
Landscaping
trees, retaining wall, patios
Benefits that deliver
Details that add clarity and confidence
HomeStyle Renovation Loan Process
Phase 1 – Preparation
- Borrower selects a contractor* and submits renovation plans to the lender.
- Lender reviews borrower’s documents to ensure the project meets all requirements.
- Lender orders an as-completed appraisal to assess maximum mortgage amount, check loan-to-value ratio, and calculate the loan amount.
Phase 2 – Renovation
- Lender prepares to close by checking whether improvement funds need to be escrowed or require a contingency reserve.
- Lender and borrower execute required documents at loan closing, including a Renovation Loan Agreement.
- Funds are placed into custodial account, and lender delivers the loan to Fannie Mae®.
- Lender services the loan, managing all project draws and overseeing the renovation process.
Phase 3 – Completion
- Lender receives the final draw request, initiating the last phase of lender oversight.
- Lender orders a final inspection, appraiser signs completion certificate, and lender provides it to Fannie Mae.
- Before funds are issued, lender must ensure a clear title and make sure no additional liens remain on the property.
- After project is completed, lenders can submit required documents to remove recourse.
- Lender closes the renovation escrow account and uses any remaining funds towards reducing the unpaid principal balance (UPB).
*Contractor subject to lender review. For DIY requirements, visit the Fannie Mae Selling Guide.
Form 1035 HomeStyle Renovation “Maximum Mortgage” worksheet
Form 1202 Contractor Profile Report
Form 1204 HomeStyle Renovation consumer tips
Form 3730 Renovation Contract
Form 3731 Renovation Loan Agreement
Form 3739 Lien Waiver
Riders and Addenda
A list of model riders and addenda to the security instrument. Model documents relevant to HomeStyle Renovation include Forms 3732 and 3733.
I have seen the incredible benefits that these loans offer to both buyers and homeowners. HomeStyle Renovation loans make it possible for buyers to purchase fixer-uppers and for homeowners to refinance and make necessary improvements to their aging homes.
Did you know HomeStyle also covers energy-related home improvements?
HomeStyle Energy provides financing for wide variety of sustainable updates—perfect for borrowers looking to conserve energy, make their home more resilient, or add comfort and peace of mind.
![](/https/singlefamily.fanniemae.com/sites/g/files/koqyhd181/files/styles/scale_2000/public/2024-06/homestyle_promo_energy_image_small%402x.png?itok=i7_jqKb8)