HOMESTYLE RENOVATION LOANS
buy or Renovate A Home With a rehab mortgage
HomeStyle renovation loans allow borrowers to finance both the purchase or refinance of a home and renovation costs using a single mortgage.
Perfect for buyers or homeowners looking to upgrade, remodel, or improve a property.
loan snapshot
Rates updated daily
30-yr. fixed
6.356%
6.367% APR
6.367% APR
15-yr. fixed
5.79%
5.808% APR
5.808% APR
7-yr. ARM
6.2%
6.316% APR
6.316% APR
30-yr. fixed VA
5.833%
6.033% APR
6.033% APR
HOMESTYLE LOAN HIGHLIGHTS
Why use a homestyle renovation loan?
Renovate With One Mortgage
Finance both the property and renovation costs together instead of using separate financing.
Purchase or refinance eligible
Use renovation financing when buying a home or refinancing an existing property.
wide range of renovations allowed
Eligible improvements may include kitchens, bathrooms, flooring, roofs, pools additions, and more.
Increase Your Home Equity
Renovations may help improve functionality, comfort, and long-term property value.
Flexible property types
Programs may allow primary residences, second homes, and certain investment properties.
minimum requirents for a homestyle renovation loan
credit score
640+
minimum down payment
3% for first-time buyers
5% for repeat buyers
Debt-to-income ratio
Up to 49%
Mortgage insurance
Required with < 20% down
Occcupancy
Primary, vacation and investment
Loan limits
Up to $832,750 in most counties
Up to $1,249,125 for high cost of living markets
A HomeStyle Renovation Loan May Be A Great Fit If You...
You are purchasing a fixer-upper or outdated property
You want to finance renovations into one mortgage
You are planning minor or major upgrades such as kitchen, bathroom, additions or more.
You have strong cash flow but significant business write-offs
You want to improve property value or livability
how it works
how homestyle renovation loans work
A HomeStyle renovation loan lets you finance both the purchase price (or refinance) of a home and the cost of renovations – all in one loan.
1
purchase or refinance the property
Begin by identifying the property you want to purchase or refinance and determine renovation goals.
2
Gather contractor bids
Work with licensed contractors to create renovation plans and provide estimates and renovation plans.
3
Include renovation costs
Renovation costs and other soft costs are added to your loan amount so you can finance everything.
4
Renovation costs begin after closing
Once you close, renovation work begins and funds are distributed as work is completed.
HomeStyle Renovation Loan FAQ
Frequently Asked Questions
Get answers to some of the most common questions about HomeStyle loans for contractors and self-employed borrowers.
What is a HomeStyle renovation loan?
A HomeStyle loan is a conventional mortgage with the renovation component. It allows you to take a conventional mortgage and include the cost of the repairs into one mortgage.
What is the minimimum down payment for a homestyle loan?
For first-time homebuyers, the minimum down payment is 3%. For repeat buyers, the minimum down payment is 5% and for investment properties, it’s 20%.
Can I buy a fixer-upper with a homeStyle loan?
Yes! You can buy any type of property that is in need of a lot of (or a little) rehab and turn it into the house you want.
How are renovation funds distributed?
Can a homeStyle loan be used for investment properties?
Absolutely. A conventional mortgage is used for the purchase of investment properties and a HomeStyle loan can do the same for you. If you have your eyes on an invement rental property or own one already that you need rehab on, the HomeStyle mortgage might be the solution for you.
ready to explore your HomeStyle loan options?
Let’s walk through your numbers, monthly payment, and available conventional homestyle loan options so you can understand the best path forward.
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