The FNMA HomeStyle conventional mortgage allows a buyer to purchase a home that needs renovations and include them in the financing. This facilitates the purchase of the home and the renovations in one loan rather than getting a separate second mortgage or home equity line of credit.
The combination of these loans should save closing costs as well as interest rates which would typically be higher on a home improvement loan.
The borrower will need to have an itemized, written bid from a contractor covering the scope of the improvements. Any type of renovation or repair is eligible if it is a permanent part of the property. Improvements must be completed within 12 months from the date the mortgage loan is delivered.
Up to 50% of the renovation funds may be advanced for the cost of materials after the closing of the loan.
This mortgage does have a provision for the borrower to do a portion of the work themselves if it doesn't exceed 10% of the total project and it must pass inspection on completion just as the contractor's work.
It is recommended that borrowers thoroughly research this program before they commit to a loan. For detailed information, see FNMA HomeStyle Renovation Mortgage and Selling Guide Announcement SEL-2017-02. It is important to work with a mortgage officer who is familiar with these loans who can guide you through the process.
Stay up to date on the latest real estate trends.
Real Estate
June 30, 2025
Explore the Latest Styles and Innovations in Home Design
June 25, 2025
June 24, 2025
June 23, 2025
June 20, 2025
June 19, 2025
June 18, 2025
June 16, 2025
June 13, 2025
Bob is dedicated to offering the finest real estate service available in the Lake Geneva area. He attempts to make each buyer or seller he works with feel like they are the one and only client he has and strives to make each transaction a pleasurable experience with the least amount of problems, stress, and inconvenience to them.