Facebook Google Linkedin
Get a Quote

Conventional Home Style rehab loan FAQ

  • Home
  • Conventional Home Style rehab loan FAQ
Frequently Asked Quiestions

Michigan HomeStyle Renovation Loan FAQs

What is a HomeStyle Renovation loan in Michigan?

A HomeStyle Renovation loan is a conventional mortgage backed by Fannie Mae that allows eligible Michigan homebuyers and homeowners to finance the purchase or refinance of a home together with qualifying renovations and repairs.

Yes. Eligible Michigan properties can be purchased with HomeStyle Renovation financing when the property and proposed improvements meet Fannie Mae and lender requirements. The renovation costs are incorporated into the mortgage rather than requiring a separate renovation loan.

Not necessarily. Fannie Mae does not require a property to be habitable at closing for HomeStyle Renovation financing. Under applicable requirements, financing may include certain costs associated with the period when the property is temporarily uninhabitable.

A HomeStyle Renovation loan is a conventional mortgage backed by Fannie Mae that allows eligible Michigan homebuyers and homeowners to finance the purchase or refinance of a home together with qualifying renovations and repairs.

Yes. HomeStyle Renovation can be used for eligible older Michigan homes that require repairs or improvements. Common projects may include roofing, electrical, plumbing, HVAC, kitchen renovations, bathroom remodeling, structural repairs, and other eligible improvements.

A lender may require inspections or other property evaluations depending on the property and renovation project. An inspection can help identify existing deficiencies and provide useful information when developing the renovation scope.

Yes. Eligible projects can include substantial renovations, additions, and multi-room improvements. However, the project must comply with Fannie Mae requirements, applicable loan limits, appraisal requirements, and local Michigan building regulations.

Yes. Eligible additions may be included when the proposed work meets Fannie Mae requirements and applicable local building codes. The completed project must also satisfy the lender’s appraisal and property eligibility requirements.

Yes. Kitchen and bathroom renovations can generally be included when they qualify under the HomeStyle Renovation guidelines. The improvements should be properly documented in the renovation plans and approved by the lender.

Yes. Eligible repairs and improvements can include major property systems such as roofing, heating and cooling, plumbing, and electrical work. The exact improvements must be acceptable under the HomeStyle Renovation program and lender requirements.

When permits are required for the proposed work, they must be obtained according to the applicable Michigan and local jurisdiction requirements. Permit requirements can vary depending on the municipality and type of renovation.

A renovation inspection can help identify property deficiencies, clarify the existing condition of the home, and provide useful information when determining the scope of renovation work. It can also help homeowners and lenders better understand the property’s condition before rehabilitation begins.

Does the completed renovation need to meet Michigan building codes?

Yes. Renovation work must comply with applicable state and local requirements. Depending on the project and jurisdiction, inspections or other approvals may be required before the renovation phase can be completed.

Certain landscaping improvements may qualify when they meet Fannie Mae’s requirements, including requirements concerning improvements that are permanently affixed to the property.

Yes. During the rehabilitation stage, the consultant performs inspections to verify completed work before applicable draw funds are released. The consultant also verifies completion at the end of the project.

Certain manufactured housing properties may qualify, subject to Fannie Mae’s specific eligibility requirements and applicable loan limitations. The property must meet the required standards for manufactured housing.

No. HomeStyle Renovation financing cannot generally be used to construct an entirely separate residential dwelling on the same property parcel.

The handling of unexpected repairs depends on the loan terms, renovation documents, contingency provisions, and lender requirements. For two-to-four-unit properties, Fannie Mae requires a contingency reserve under applicable HomeStyle Renovation guidelines.

When local regulations require a final inspection, certificate of occupancy, or other municipal approval, those requirements must be satisfied before the renovation phase can be closed. The property must also meet applicable Fannie Mae property requirements.

Yes. Eligible energy-related improvements may be financed through HomeStyle Renovation. Depending on how the transaction is structured and which energy improvements are selected, additional documentation or energy-related requirements may apply.

Yes. HomeStyle Renovation is a conventional Fannie Mae mortgage product and is not limited to Chicago. Eligible properties throughout Michigan may qualify, subject to Fannie Mae guidelines, lender requirements, property eligibility, appraisal requirements, and local regulations.

Scroll to Top