Scott Storace - Branch Manager, 100 Pacifica Drive Ste. 140, Irvine CA 92618 NMLS #226339 949.973.0141

"From the minute you call me to the minute we close, I have your back. No hassles, no banker’s hours & quick response times." - Scott Storace

  • Home Loans up to $3,000,000
  • Interest Rate Float Down Option

Have Questions? Call 949.973.0141

Orange County, CA: Fannie Mae Homestyle Renovation Loan

So you live in Orange County, CA and you need a loan that’s greater than $417,000. No surprise there! It’s rather common in our neck of the woods. You begin looking for homes though and find that the properties that fit your budget need significant renovations. Add to that your limited pool of assets and what do you have? A unique lending challenge! The answer may be the Fannie Mae Homestyle Renovation loan.  

This loan can be used on any eligible property, not just Fannie Mae owned properties like the Homepath Renovation loan. There are other significant differences between these two conventional renovation loans.

  1. The Fannie Mae Homestyle Renovation loan allows for high balance loan amounts. In Orange County, CA that amount currently stands at $625,500.
  2. The Fannie Mae Homestyle Renovation loan allows for construction financing up to $150,000.
  3. Mortgage insurance is required when LTV’s exceed 80%.
  4. Down payment and credit requirements are greater. You’ll need a 700+ credit score and down payments on 1-unit primary property purchases begin at 10%. It’s 25% down on 2-4 unit primary property purchases and 35% down on 2nd homes and investment properties.


There are many similarities as well. Here’s what else you can expect with the Fannie Mae Homestyle Renovation loan.

  1. The maximum construction cost of $150,000 is determiend by the lesser of 50% of the as-completed value or the total renovation cost. This includes, labor & materials, soft costs (permits, engineering, etc.) and a 10% contingency reserve. The contingency covers any unforeseen repairs or deficiencies uncovered during the course of construction. The 10% contingency reserve may also be funded separately instead of included in the financed amount.
  2. The work must be completed in 120 days.
  3. All upgrades must be permanently affixed to the property.
  4. There are additional fees for administration, inspections and doc preparation.
  5. An appraisal based on the “as-completed” value is required.
  6. Available on single-family homes, condominiums, PUD’s.
  7. Do-It-Yourself (DIY) is not allowed even if the borrower is a licensed contractor.
  8. Plans and specifications are required. The contractor will bid the job from the plans and spec’s. The appraiser will use the plans and spec’s to determine the “as-completed” value .


The Fannie Mae Homestyle Renovation loan is a great fit in Orange County, CA because of the higher property values and loan amounts found here. And it’s not cheap to renovate a home here either! $35,000 may be good for some small upgrades but $150,000 is more realistic for major rehabs.

This program is available for investors, second home owners and available on condominiums as well. It can be used on purchases or limited cash-out refinances.

Now when homeowners walk into a property they don’t just see what is, they see what can be. Knowing that they have the Fannie Mae Homestyle Renovation loan at their disposal allows them to see the opportunities instead of the obstacles.

If you have questions about the Fannie Mae Homestyle Renovation program then let me know. I’ll answer your questions and help you find the best loan for you!

Scott Storace

If you like this post please share it!


    • nitin Says:
    • February 19th, 2013


    Do you also do Homestyle loan in Alameda, San Mateo and Santa Clara county? These are in CA. If yes, what is the LTV we can get on loan of around 550K?