Fannie Mae HomeStyle Refresh

Smaller-scale improvements

Current Fannie guidance includes eligible renovation, efficiency, environmental remediation, resiliency and disaster-related improvement activities.

Renovation amount

For renovation of an existing property, current guidance permits up to 15% of the as-completed appraised value for purchases or limited cash-out refinances.

Appraisal

An interior/exterior appraisal is required, with as-completed value used when delivered before work is complete.

Initial draw

Current guidance permits an initial draw of up to 50% of planned renovation costs, subject to program requirements.

Refresh changed in 2026

Fannie's August 2026 Guide describes HomeStyle Refresh for smaller-scale existing-property improvements including energy/water efficiency, environmental remediation, resiliency and disaster repairs.

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.

From property tour to closing: the practical sequence

1. Define the scope: separate required repairs, borrower upgrades and structural work. 2. Choose the likely program: compare FHA Limited/Standard 203(k), Fannie HomeStyle or Refresh, Freddie CHOICERenovation/eXPress and any lender-specific alternatives. 3. Price the work: obtain usable contractor bids and identify permits, engineering and consultant costs. 4. Appraise the completed plan: make sure the appraiser is valuing the same improvements the lender is financing. 5. Close and administer: understand escrow, draws, inspections, change orders and completion certification before construction begins.

A renovation mortgage solves a financing problem only when the construction plan is financeable too. The cheapest contractor or highest projected value does not help if the scope cannot be approved, the contractor cannot operate under draws, or the work cannot be completed within the program timeline.