HomeStyle Appraisal, Contractor & Completion
HomeStyle Renovation uses an as-completed appraisal and formal contractor, documentation and completion requirements.
As-completed value
Fannie requires the appraisal to provide an as-completed value estimating the property after the planned renovation.
Contractors
Renovation work generally must be performed by appropriately licensed contractors or subcontractors when licensing applies under state or local law.
Contract
The renovation contract must identify work, cost, subcontractors/suppliers and the schedule for stages and payments.
Completion
Fannie requires completion certification, generally documented on Form 1004D, and final lien/title protections before final disbursement.
Three parties must agree on one project
The borrower's scope, contractor bid and appraiser's as-completed assumptions need to describe the same renovation. Mismatched scope is a common cause of rework.
Pre-approval renovation checklist
Prepare a preliminary scope, rough contractor pricing, structural/nonstructural classification, expected permit needs, occupancy plan during construction, target completion time and likely as-completed value. Identify condo, manufactured-home, ADU, mixed-use or multi-unit characteristics before ordering the appraisal.
Execution checklist
Confirm the lender actively originates the selected renovation product; contractor accepts draw-based payment; required consultant is available; bid matches appraisal scope; permits can be obtained; contingency/change-order process is understood; and borrower has enough non-escrow liquidity for costs the program will not finance.
Primary sources to verify
- HUD — FHA 203(k)
- Fannie Mae — HomeStyle Renovation Eligibility
- Fannie Mae — HomeStyle Costs & Escrows
- Fannie Mae — HomeStyle Refresh
- Freddie Mac — CHOICERenovation
- Freddie Mac — CHOICEReno eXPress
Last reviewed September 15, 2026.