| GMFS Partners |
TPO · Updated 8/14/26 |
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Fannie Mae single-close renovation loan
HomeStyle® Renovation
One loan, one closing. Your borrower finances the purchase or refinance and the renovation in a single first mortgage — and locks the permanent rate at closing instead of floating through construction.
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Program update
Maximum renovation amount is now $500,000.
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97%
LTV on 1-unit primary residences for first-time buyers or Fannie-owned refinances
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15 & 30
Year fixed-rate terms, plus all eligible ARM products
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11 mo.
To complete the work. Draws process in 4–5 days once requested
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Why partners use it
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Rate locked at closing. The loan closes, funds, and sells to Fannie Mae before the renovation is complete. |
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First-mortgage pricing instead of a second lien, a HELOC, or costlier financing. |
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Purchase or limited cash-out refinance on 15- and 30-year fixed and all eligible ARMs. |
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Pairs with HomeReady for the lower MI coverage on eligible borrowers. |
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Title updates for each draw are no longer required — one date-down before the final draw. |
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DIY permitted case by case for cosmetic scopes such as paint, flooring, and small repairs. |
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At a glance
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| Minimum credit score |
700 |
| Maximum renovation |
$500,000 |
| Eligible property |
1–2 unit primary, 1-unit second home |
| Underwriting |
DU only — no manual |
| Purchase LTV basis |
Price + reno cost or “subject to” value, whichever is less |
| Administration fee |
$1,499 |
| Inspections |
$550 flat · $300 final · $150 date-down |
Three- to four-unit properties are not eligible; investment properties by case-by-case exception only.
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Three things to do before submission
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1. Get the contractor approved
Send the Contractor Profile Report to the Construction Help Desk and allow one week for review.
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2. Get the contract and LE reviewed
The Construction Loan Department confirms fees, the contract amount, and the required contingency.
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3. Run DU correctly
Enter the contract amount in Box B — Alterations, Improvements, Repairs — so DU recognizes a HomeStyle loan.
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