Homestyle Renovation Loans

Buy or refinance and renovate—bundled in one smart mortgage

With a Homestyle loan, you don’t need separate financing for your fixer-upper or remodeling plans. This renovation mortgage—offered through Fannie Mae—lets you combine the cost of your home and the cost of improvements into a single mortgage. Whether you’re buying a property that needs upgrades or refinancing your current home to add value, CTC Mortgage can guide you through every step of the renovation loan process.

Buy or refinance and renovate with one loan

A Homestyle renovation mortgage is perfect for homeowners or buyers looking to improve a home without taking out a separate construction loan. You can use this loan to purchase a property and finance repairs at the same time—or refinance your existing home and roll renovation costs into the new mortgage. Because the loan is based on the home’s after-renovation value, you may qualify for more borrowing power than with a traditional mortgage.

How the Homestyle program works

Here’s how it breaks down: You’ll work with a contractor to get written estimates for the renovations, which are submitted as part of your mortgage application. You can finance up to 75% of the after-improved value of the home. Once approved, your mortgage closes with both purchase/refinance funds and renovation funds included. Those renovation dollars go into an escrow account and are paid out as work is completed. This loan covers both major and minor projects—even luxury improvements.

Eligible home improvement projects

A Homestyle loan can finance nearly any permanent improvement that adds value to the property. Eligible projects include:



• Kitchen and bathroom remodels
  
• Roof replacements or structural repairs
  
• Room additions or basement finishes
  
• Energy efficiency upgrades
  
• Landscaping or hardscaping
  
• Even high-end items like pools or outdoor kitchens
  
  

Unlike some renovation loans, Homestyle doesn’t restrict “luxury” upgrades—as long as the improvements are permanently attached to the home and add value.

Homestyle vs FHA 203(k): What’s the difference?

Both Homestyle and 203(k) loans help finance homes that need work—but there are key differences. Homestyle renovation is a conventional loan, typically requiring a credit score of 620 or higher and 5% down for most primary residences (as low as 3% for first-time buyers). It allows a wider range of upgrades and can even be used on second homes or investment properties. The FHA 203(k) requires just 3.5% down and allows lower credit scores, but limits the types of improvements and is only for primary residences. At CTC Mortgage, we can walk you through both options and help you choose the best fit for your needs.

Who qualifies for a Homestyle renovation loan

To qualify, you’ll typically need:



• A credit score of 620 or higher
  
• A down payment of 3–5% (for primary homes)
  
• A licensed contractor providing written estimates
  
• A manageable debt-to-income ratio, including the new mortgage payment
  
• A contingency reserve (usually around 10%) for unexpected renovation costs
  
  

We’ll review your income, credit, and the scope of the project to determine eligibility. This program is available for single-family homes, some multi-units, condos, and even investment properties with a larger down payment.

Ready to renovate? Let’s talk

Whether you’ve found a home with potential or want to upgrade the one you already love, a Homestyle loan gives you the power to finance it all in one smart mortgage. At CTC Mortgage, we help homebuyers and homeowners navigate the added steps—from collecting contractor bids to managing escrow disbursements—so your project can move forward smoothly.



Let’s explore how to turn that house into your dream home.

Faqs– Homestyle Renovation Loans

Answers to common mortgage questions