HomeStyle Renovation. Conventional. No permanent MI.

HomeStyle is conventional (Fannie Mae); 203(k) is FHA-insured. Three big consequences: HomeStyle has no permanent mortgage insurance if you put 20% down (or PMI drops at 80% LTV); 203(k) has lifetime MIP at low down payments.

HomeStyle allows luxury items — pools, outdoor kitchens, ADUs — that 203(k) excludes. HomeStyle works on investment properties (rare lender support); 203(k) is owner-occupied only.

The trade: HomeStyle requires 620+ FICO (680+ for best pricing) and minimum 3% down for first-time buyers, 5% for repeat. 203(k) allows 580+ FICO with 3.5% down — easier qualification path. See 203(k) explained.

Yes — pools, hot tubs, outdoor kitchens, tennis courts, and other "luxury" items are all eligible if they add value to the property. This is a major HomeStyle advantage over FHA 203(k), which categorically excludes these.

Underwriting evaluates whether the improvement is reasonable for the neighborhood. A $200K pool on a $400K home in an area with no comparable pools may flag — but standard pool installations in pool-friendly markets are routine.

Up to 75% of the after-repair value (ARV) can go toward renovation costs. The total loan amount (purchase + renovation + closing) caps at 2026 conforming limits: $832,750 baseline, up to $1,249,125 in high-cost areas.

Practical example: $500K purchase, ARV after improvements of $700K — you could finance up to $525K in renovation (75% of $700K), assuming you stay under conforming limit. Realistic projects: $25K-$200K renovation budgets.

No. HomeStyle works for first-time buyers, repeat buyers, and existing homeowners refinancing. Down payment varies: 3% for first-time buyers (HomeReady-eligible), 5% for repeat primary residence, 10% for second homes, 15-25% for investment properties.

For refinances, you can also do a HomeStyle Renovation Refi on a home you already own — rolling the renovation cost into a new conventional first mortgage. See Refi + Renovate for that path.

Automatically at 78% LTV based on original schedule, or by request at 80% LTV with a current appraisal. With renovation loans, the post-completion appraisal often shows substantially higher value than the as-is appraisal — meaning you may hit 80% LTV faster than expected.

Aggressive equity-build strategy: put down 5% on a HomeStyle, complete major renovation, request appraisal at 80% LTV — many borrowers cancel PMI within 12-18 months. This is HomeStyle's structural advantage over FHA, where MIP is permanent at low down payments.

No. Licensed general contractor required. Even skilled DIY tradespeople are not allowed to self-perform on HomeStyle (or any conforming renovation loan). The contractor packet — license, insurance, bid, references — is non-negotiable. See contractor tips.

Sweat equity is technically allowed in some narrow circumstances under recent guideline updates, but in practice almost no lenders permit it. Plan on professional contractor labor for the full scope.

45-60 days from offer to closing, similar to 203(k). The contractor packet review, appraisal (as-completed), and underwriting cycle all add to standard purchase timelines.

Construction phase: up to 12 months to complete (longer than 203(k)'s 6-month default), with a possible 12-month extension. The longer construction window is another HomeStyle advantage for major projects.

Typically 0.25-0.50 percentage points higher than a non-renovation conventional purchase, similar to or slightly less than 203(k)'s rate premium. With strong credit (740+) the gap narrows.

Once renovation is complete, the rate locks for the life of the loan. The premium is fixed monthly cost, but the trade-off is access to fixer properties and major renovations without permanent MI. Compare with OTC Construction if you're considering a teardown-rebuild instead.