To help home owners create the home of their dreams, Fannie Mae has introduced the HomeStyle Renovation loan. The HomeStyle loan is Fannie’s version of a construction loan, with flexible down payment requirements and lending guidelines.
Guidelines
Eligible Properties:
- Primary residence, 1-4 units
- One-unit second homes
Down Payment Requirements:
Owner Occupied (purchase or refinance)
- One Unit: 5% down/equity fixed rate
- Two Units, Multi Fam: 15% down/equity fixed rate
- Three to Four Units: 25% down/equity fixed rate
Second Home (purchase or refinance) 10% down/equity fixed rate
Mortgage Types:
15 and 30 year fixed
Loan Includes (must be lender approved)
- Architects/designer expenses
- Energy efficiency assessments
- Engeineering and design updates
- Required inspections
- Permit fees
