Residential · Calculator
HomeStyle Renovation Max Mortgage
Fannie Mae Form 1035, fully wired. Purchase or refi, 1-4 unit primary, second home, or investment, with the renovation cost stack, 75% reno cap, +15% HomeStyle Energy, and full cash-to-close summary in one view.
Section A: Loan Parameters
Determines max LTV per Fannie Selling Guide B7-1-04.
Second home is 1-unit only. 3–4 unit not eligible on second home.
Drops reno cap from 75% to 50% of B3.
≤80% AMI. Pairs with HomeStyle on primary 1u for 97% LTV.
Unlocks 97% LTV on primary 1u even without HomeReady.
Section B: Property Information
Net of seller concessions over the Fannie limit. Use cash-to-close inputs to back out concessions if needed.
Current condition appraisal (informational; HomeStyle qualifies on B3).
Subject-to (as-completed) appraisal. The value HomeStyle qualifies on.
Section C: Renovation Costs
Cap: 75% of B3Contractor bid + materials. Excludes contingency and fees (those are separate lines).
10–20% of C1a. 15% typical; 20% on older homes / unknowns.
If escrowed during the build period. 0 if owner-occupied + no payment relief.
Capped at 15% of B3 — adds to D2 on top of the reno cap.
Closing Costs & Credits
Total borrower-paid closing costs + prepaids.
Subject to Fannie IPC limits by occupancy + LTV.
Permanent loan rate, for the PMI estimate.
Only applied when LTV > 80%. Tune by FICO/LTV grid.
Base Mortgage (D3)
$468,500
LTV factor 95.00% · effective LTV 89.24% of B3 · Purchase
Section C: Renovation Cost Stack
Section D: Mortgage Calculation
Section E: Cash to Close
Frequently asked
About this calculator.
HomeStyle Renovation vs FHA 203(k) — when do you pick which?
HomeStyle is conventional; 203(k) is FHA. HomeStyle wins when the borrower has 5%+ down, a 620+ score, and wants to avoid life-of-loan FHA MIP — and it scales to 4-unit primary, second home, or investment property. 203(k) wins on lower credit (down to 580), higher allowable DTI, gift-fund flexibility, and 96.5% LTV with 3.5% down. Investors and second-home buyers cannot use 203(k); they need HomeStyle. Owner-occupants on a fixer with weaker credit lean 203(k); owner-occupants with stronger credit or anyone buying a second home or rental lean HomeStyle.
How much can I finance in renovation through HomeStyle?
Up to 75% of the after-improvement (as-completed) appraised value, called B3 on the worksheet. So if B3 is $500,000, the financeable renovation cap is $375,000 — that includes hard repair costs, contingency reserve, inspection fees, architect fees, permits, and other renovation-related fees. The cap drops to 50% of B3 on manufactured housing. HomeStyle Energy improvements stack an additional 15% of B3 on top of the 75% cap if you are doing energy work.
Can I use HomeStyle on a 2-4 unit?
Yes on primary residences and on investment property. 2-unit primary up to 85% LTV, 3-4 unit primary up to 75% LTV. Investment 2-4 unit caps at 75% LTV. Second-home properties are 1-unit only at up to 90% LTV.
Can investors use HomeStyle?
Yes. HomeStyle is one of the few conventional renovation products available to investment-property borrowers. Investment 1-unit caps at 85% LTV, 2-4 unit at 75% LTV. The reno cap, contingency rules, 15-month construction window, and contractor requirements all apply identically to investor files.
What is HomeStyle Energy and how does it stack on top of the 75% cap?
HomeStyle Energy lets you finance qualified energy efficiency, water efficiency, and renewable-energy upgrades on top of the standard renovation cap. It adds up to 15% of B3 (the after-improvement value) above the 75% reno cap. So on a $500,000 B3, you can finance $375,000 of standard renovation PLUS another $75,000 of energy improvements — combined up to $450,000 of total improvements financed. Eligible energy work includes solar PV, energy-efficient HVAC, insulation, windows, water-conservation fixtures, and resilience improvements (storm shutters, foundation reinforcement).
Does HomeStyle require a HUD consultant?
Fannie does not require a HUD consultant the way FHA Standard 203(k) does, but the lender can require one — and many do for renovations exceeding 30% of as-completed value or any project with structural work. The contractor must be licensed, insured, and approved by the lender. The lender administers the renovation escrow and authorizes draws after milestone inspections. On simpler cosmetic renovations (kitchens, baths, paint, flooring), most lenders skip the consultant requirement.
What happens if construction goes over the 15-month window?
Renovation must complete within 15 months from the closing date per Fannie Selling Guide B5-3.2. If it overruns, the loan falls out of HomeStyle compliance and the lender has to either (a) extend the construction period via Fannie variance, (b) modify the loan to a standard conventional, or (c) require the borrower to refinance. Most lenders front-load timeline buffers in the contractor agreement to avoid this.
Can I roll my existing mortgage payoff + renovation into a HomeStyle refi?
Yes — limited cash-out HomeStyle refinance lets you combine the existing UPB, the renovation budget, financed closing costs, and prepaids into a new first mortgage sized against B3 × LTV. Cash-back to the borrower at closing is capped at the lesser of 2% or $2,000 of the new loan amount (Fannie Selling Guide limited cash-out rules). True cash-out is not allowed on HomeStyle Renovation.
Buying a fixer or refi-and-renovate
Renovation in one loan, one closing.
Send the property address, the contractor scope of work, and the appraisal (or just the deal). We'll size HomeStyle Renovation, run the contractor numbers, and structure for the LTV.
Prefer to talk first? Call (707) 583-3666