In short
A Fannie Mae HomeStyle purchase loan is a conventional mortgage that finances a home and its renovation together, based on the as-completed value. It has no minimum credit score with DU approval (620 manual) and works for primary homes, second homes and investment properties.
Reviewed by Scottie Campbell, NMLS #1610726 · Last updated October 18, 2026
How does a Fannie Mae HomeStyle purchase loan work?
A HomeStyle purchase loan is a conventional mortgage that covers the purchase price of a home plus the cost of renovations, based on the home's as-completed value. A licensed contractor provides a written bid, an appraiser values the home as it will be after the work, and the renovation funds are held in escrow and paid out in stages as the work is done. There's no minimum credit score with a Fannie Mae DU approval, and 620 if the loan is manually underwritten.
Key takeaways
The Fannie Mae HomeStyle purchase loan is the conventional way to buy a home and renovate it with one mortgage. It's more flexible than most people expect. You can finance upgrades like a pool or an outdoor kitchen, buy a second home or a rental, and drop mortgage insurance later once you build enough equity. If you've got solid credit and a vision for a house that isn't there yet, I kinda like this strategy for you.
Built for Buyers With a Vision
Some buyers walk into a house and see what it is. Others see what it could be. HomeStyle is for the second group.
With a HomeStyle purchase, you can buy the home and fund the remodel together, and the loan is based on what the home will be worth when the work is finished. What that means for you is you don't have to buy the house, then scramble for a second loan, a credit card or your savings to make it yours.
What Makes HomeStyle Different
HomeStyle is a conventional loan, so it plays by different rules than the FHA 203(k):
- Upgrades are allowed. Pools, outdoor kitchens, landscaping and other improvements that aren't strictly repairs can be included, as long as they're permanently attached to the property.
- More property types. Primary residences, second homes and one-unit investment properties are all eligible.
- Mortgage insurance can come off. If you put down less than 20%, you'll have PMI, but it can be removed later once you reach enough equity.
- No DU credit minimum. There's no minimum credit score with a Fannie Mae DU approval, and 620 if manually underwritten.
HomeStyle vs. FHA 203(k) Purchase
| HomeStyle Purchase | FHA 203(k) Purchase | |
|---|---|---|
| Loan type | Conventional | FHA-insured |
| Minimum credit score | No DU minimum; 620 manual | 500 (10% down from 500 to 579) |
| Occupancy | Primary, second home, investment | Primary only |
| Luxury items | Allowed | Not allowed |
| Mortgage insurance | PMI under 20% equity, removable | FHA MIP |
Quite frankly, if your credit is in good shape, HomeStyle often wins on flexibility. If your credit is still recovering, the 203(k) may be the better door. I'll run both.
Down Payment Assistance
Some down payment assistance programs allow renovation loans. For HomeStyle purchases, programs I can look at include:
- Gold Star Advantage
- Within Reach Conventional DPA
- HFA Preferred (Florida)
- TSAHC Home Sweet Texas
- OHFA Down Payment Assistance (Ohio)
These apply only where the program allows renovation loans. DPA availability depends on property location, income limits and loan type, and eligibility is confirmed per program. I'll tell you plainly which ones fit your purchase.
How a HomeStyle Purchase Comes Together
- Greenlight Approval. We pre-underwrite your file before you shop, so you know your budget for the house and the remodel, and sellers see a strong buyer.
- Find the home. Write the offer with time built in for contractor bids and the as-completed appraisal.
- Contractor bid and plans. Your licensed contractor provides a detailed bid. Bigger projects may need plans or permits reviewed.
- Appraisal. The appraiser values the home based on the finished project.
- Closing. You buy the home, and the renovation funds go into escrow.
- Renovation and draws. Your contractor is paid in stages as inspections confirm progress.
My team coordinates the moving parts so you aren't stuck playing referee. High-tech, high-touch.
Why Buy With Waymaker Mortgage Company
Waymaker funds conventional loans in house, and I underwrite through multiple investor partners. A bank has one underwriting desk and one set of rules. If one investor's HomeStyle guidelines don't fit your project, I take it to one that does.
I'm also a real estate investor. I can help you think through which upgrades tend to add value in Georgetown, TX and which ones are for your enjoyment only. Both are fine choices, and you should know which is which.
Every scenario gets a Total Cost Analysis, so we compare the total cost over the time you'll own the home, not just the monthly payment. On rates: Your rate depends on your scenario and the day's market. Reach out and I'll price it for real.
Let's Talk About the House You Have in Mind
Send me the listing and your wish list. We'll build a Mortgage Action Plan and get you rocking and rolling. My job is to educate and empower you. Your job is to decide.
Information on this page is general and educational. It is not a commitment to lend or an offer of credit. Programs, guidelines and eligibility change and depend on your full scenario. Waymaker Mortgage Company, NMLS 2440476. Equal Housing Lender.
Quick facts
- Loan type
- Conventional (Fannie Mae HomeStyle) purchase with renovation
- Minimum credit score
- No minimum with Fannie Mae DU approval; 620 manual
- Occupancy
- Primary residence, second home or one-unit investment
- Luxury items
- Allowed, such as pools and outdoor kitchens
- Mortgage insurance
- PMI under 20% equity, removable later
- DPA
- Gold Star Advantage, Within Reach Conventional DPA, HFA Preferred, TSAHC Home Sweet Texas, OHFA DPA (where renovation loans are allowed)
Is this loan right for you?
Who it's for
- Buyers with solid credit who want to remodel the home they buy
- Buyers who want upgrades like a pool or outdoor kitchen included
- Second-home buyers and real estate investors buying a property that needs work
- Buyers who want mortgage insurance they can remove later
Who it may not fit
- Buyers whose credit fits FHA better, where the 203(k) may be the easier path
- Anyone planning to do the renovation work themselves
- Buyers who need a very fast closing
Pros and cons
Pros
- Finance the home and the remodel in one conventional loan
- Upgrades and luxury improvements allowed
- Works for primary, second home and investment properties
- PMI can be removed once you reach enough equity
- Underwriting through multiple investor partners, not one bank desk
Trade-offs to weigh
- Credit and down payment rules can be stricter than FHA for some borrowers
- More steps than a standard purchase: bids, appraisal on the finished home and draws
- Closing can take longer while the project is reviewed
Frequently asked questions
What credit score do I need for a HomeStyle purchase loan?
There's no minimum credit score when the loan gets a Fannie Mae DU approval. If it's manually underwritten, the minimum is 620. If mortgage insurance is required, a minimum may still apply. I'll look at your full scenario.
Can I use HomeStyle to buy an investment property?
Yes. HomeStyle can be used for one-unit investment properties and second homes, as well as primary residences. That's one of the biggest differences from the FHA 203(k), which is primary residence only.
Can HomeStyle pay for a pool?
Yes. HomeStyle allows improvements like pools, outdoor kitchens and landscaping, as long as they're permanently attached to the property and supported by the appraisal.
Can I use down payment assistance with HomeStyle?
Some programs allow it. Options include Gold Star Advantage, Within Reach Conventional DPA, HFA Preferred, TSAHC Home Sweet Texas and OHFA Down Payment Assistance, where the program allows renovation loans. Availability depends on property location, income limits and loan type, and eligibility is confirmed per program.
Will I have mortgage insurance on a HomeStyle loan?
If you put down less than 20%, yes, you'll have PMI. Unlike FHA mortgage insurance, PMI on a conventional loan can be removed once you reach enough equity.
Should I choose HomeStyle or an FHA 203(k)?
If your credit is strong, you want upgrades, or you're buying a second home or rental, HomeStyle usually fits better. If your credit is still recovering, the 203(k) is more forgiving. I'll compare both with a Total Cost Analysis.
Related loan programs
Low down payment options, dozens of down payment assistance programs and a Greenlight Approval that helps your offer compete. It's never a no. It's always a how.
Flexible credit, low down payment, and dozens of assistance programs. I'll show you how FHA fits your plan, then you decide.
No monthly mortgage insurance, no minimum credit score on my end, and VA loans funded in house by Waymaker Mortgage Company with underwriting through multiple investors.
Last updated October 18, 2026 · Reviewed by Scottie Campbell, NMLS #1610726. This page is educational and not a commitment to lend; program details change — ask for current figures.