specialty
HomeStyle® Renovation Loans
Buy or refinance and roll your renovation costs into one conventional loan — financed on what the home is worth after the work is done.
Eligibility
- For primary residences, second homes, and one- to four-unit investment properties
- Renovation funds are based on the home's projected as-completed value
- Requires contractor bids and renovation plans for approval
Key benefits
- Purchase or refinance and finance renovations in a single loan
- One mortgage payment and one closing
- Competitive conventional mortgage rates
- Finance both cosmetic and structural improvements
What is a HomeStyle® Renovation loan?
A HomeStyle® Renovation loan is a conventional mortgage that lets you purchase or refinance a home and finance the cost of renovations with a single loan. Whether you're buying a fixer-upper, updating your current home, or making major improvements, it wraps the property and the renovation costs into one mortgage based on the home's value after the work is done.
Who it's for
Buyers who find a home with great potential that needs updating, and current homeowners who want to renovate without taking on higher-interest credit cards, personal loans, or separate home-improvement financing. Eligible for primary residences, second homes, and one- to four-unit investment properties.
How it works
After you purchase or refinance, approval is based on the property's projected "as-completed" value. Renovation funds are placed in an escrow account and released to your contractors in stages as the work is completed and inspected — so the financing follows the progress of your project.
Frequently asked
- What can a HomeStyle® Renovation loan pay for?
- It can finance virtually any permanent improvement that adds value to the home — kitchen and bath remodels, room additions, flooring, roofing, HVAC, energy-efficient upgrades, accessibility modifications, and more, subject to program guidelines.
- How is the loan amount determined?
- Approval is based on the property's projected 'as-completed' value — what the home is expected to be worth after the renovations are finished — rather than its current condition.
- How do renovation funds get paid out?
- Renovation funds are placed in an escrow account and disbursed to your contractors in stages as the work is completed and inspected.