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Fannie Mae HomeStyle Program

Back to the Renovation Financing Future

In “the day” of the housing bubble the financial viability of a project was the last check mark on our list to determine viability.  As architects we worried about making sure the changes were exactly what our clients needed. We also made sure the context was right with the neighborhood. Then, we checked the comparable after renovation values of homes in the neighborhood to our proposed design. We acted responsible to keep our clients in positive equity position after the project.

In the last few of the “fun” years for residential renovation, our belief for the need to renovate still exists. It has actually been amplified, because people can’t sell or trade homes as easily.  Life continued for what could have been potential clients: those having children, those housing multi generational families, and those moving in town into “not so big homes” with limited options unless they chose to spend cash.

Recently, I was talking to a local contractor, Liz Davies at ESD Homes, about our firms working together. We were excited to hear about a new product from Fannie Mae, sold locally by Fidelity Bank and our now favorite loan officer, Elly Gray.  After meeting with Elly and Liz we are excited for our past and potential future clients to have more options available to them.

The HomeStyle Loan program is available for a maximum conventional loan value for renovation projects up to half the value of the completed value of the home.

HomeStyle Mortgage: Benefits

  1. Qualify for loans based on the as-completed value of the property.

  2. Improve your home at first mortgage interest rates.

  3. Do almost any type of improvements or repairs including pools and landscape.

  4. Finance up to six months of mortgage payments to cover non-occupancy costs during construction.

  5. Finance soft costs in the construction loan.

  6. Second homes and investment properties allowed.

  7. Single closing on owner occupied properties up to 4 units.

HomeStyle Mortgage: Key facts

  1. This mortgage is available to owner-occupants, purchasers of second homes and investors.

  2. Eligible properties are one- to four-unit homes, condominiums, and Planned Unit Developments.

  3. Maximum loan amount may not exceed Fannie Mae’s conforming loan limits.

  4. Maximum renovation amount is 50% of the completed (after renovation) value of the property.

  5. Qualifying ratios are 28/36.

  6. Loans are fixed-rate mortgages or rate capped ARM’s, fully amortizing with terms between 15 and 30 years.

  7. A contingency reserve equal to 10 percent of the cost of the renovation is required, and may be financed out of the loan proceeds.

While this product will not cover a large scale renovation, it may give you options for renovating good opportunities that are out there. By working with an architect like Jones Pierce and a contractor experienced in renovations, you can be assured you will maximize the homes potential and value.

If you really want to drill down on this program, I found this seminar on the Fannie Mae web site for banks and mortgage brokers. It describes the product and how to service it.

Bryan Jones, Principal Jones Pierce Inc. An Atlanta based Architectural firm specializing in custom home transformations and custom retirement homes in fun places. –


Elly Gray, Senior Loan Officer with Fidelity Bank Mortgage, specializes in residential renovation loans – helping people realize their dreams.  Elly.gray@lionbank.com

Liz Davies, an Atlanta based general contractor focused on creating living spaces with an understanding of modern needs combined with a timeless features to last a lifetime.

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