A HomeStyle Renovation mortgage may be either a fixed-rate mortgage or an ARM loan. The original principal amount of the mortgage may not exceed Fannie Mae’s maximum allowable mortgage amount for a conventional first mortgage.
Fannie Mae provides the HomeStyle Renovation Maximum Mortgage Worksheet (Form 1035)*, to assist lenders in calculating the maximum loan amount.
The maximum cost for renovations for various HomeStyle Renovation scenarios are described in the following table.
|Transaction Type||The cost of renovations must not exceed...|
|Purchase transaction||75% of the lesser of
|Refinance transaction||75% of the “as completed” appraised value of the property.|
|Manufactured homes||the lesser of
For additional information, see B5-3.2-02, HomeStyle Renovation Mortgages: Loan and Borrower Eligibility.
*For a complete list of forms used in fulfilling requirements contained in the Selling and Servicing Guides, see the Guide Forms page.