In a market where move-in-ready homes are limited and buyer expectations continue to grow, finding solutions that expand possibilities is essential. The Fannie Mae HomeStyle® Loan does exactly that. This flexible, single-close mortgage allows clients to look beyond cosmetic issues, outdated features, or needed repairs and instead focus on a property’s full potential. By combining the home purchase or refinance and improvement costs into one loan, it opens the door to more inventory, greater customization, and stronger outcomes for buyers. For real estate professionals, this program offers a powerful tool that boosts confidence, minimizes objections, and helps more clients see opportunities where they once saw obstacles.

1.  Turning Limitations Into Opportunities

In most home searches, buyers quickly dismiss properties that need updates. A dated kitchen, worn flooring, or an aging roof often becomes a reason to walk away. Yet these homes frequently offer solid value, desirable locations, or strong layouts — elements that matter most. The Fannie Mae HomeStyle® Loan bridges this gap by helping buyers envision what a home can be, rather than what it currently is.

With this loan, buyers gain the ability to finance both the purchase and the improvements through a single mortgage. This means properties that initially felt “almost right” now become viable options. It expands the number of homes they’ll consider and reduces the frustration that often comes with limited inventory. As a result, properties in need of updates transform into opportunities rather than obstacles.

Key advantages in this stage of the search:

• Encourages buyers to see potential instead of flaws

• Expands inventory by including homes that may need improvements

• Helps reposition “fixer-upper” properties as customizable options

• Makes it easier to match clients with homes that align with long-term goals

The convenience of being able to finance remodeling, structural repairs, ADUs, landscaping, and even swimming pool installation adds to this appeal. When clients can personalize a home upfront, they’re more likely to move forward confidently.

2.  Streamlining the Process With One Single-Close Loan

For many buyers, the renovation process feels overwhelming — especially when it requires separate loans, additional approvals, or juggling contractors. The HomeStyle® Loan removes these barriers by streamlining everything into one simple package. This eliminates the need for separate financing and helps ensure that improvements stay on budget and on timeline.

Another major advantage is the after-completion appraisal. Instead of basing value on the home’s current condition, the appraiser evaluates the projected value after the improvements are complete. This maximizes purchasing power and offsets the concerns that come with older or outdated homes. Buyers immediately gain clarity on the home’s future value, which supports smarter decisions and reduces financial uncertainty.

Why the process works so smoothly:

• One mortgage, one closing, one payment

• Renovations financed upfront, not out-of-pocket

• Appraisal based on after-improved value, not current condition

• Applicable to primary residences, second homes, and investment properties

The down payment flexibility is another advantage: as low as 3% for primary residences, 10% for second homes, and 15% for investment property purchases. This creates a clear path for buyers who want to upgrade without exhausting their cash reserves. By keeping the process simple and consolidated, the HomeStyle® Loan helps more clients move forward with confidence and clarity.

3.  A Practical Solution for Today’s Market

Today’s housing landscape presents unique challenges,  limited inventory, aging properties, and rising construction costs. Buyers want modern, functional spaces, but not every home delivers that. The Fannie Mae HomeStyle® Loan helps bridge this gap by giving clients a practical, financially efficient way to create the home they want from the home that’s available.

This loan also helps future-proof a property. Upgrades such as energy-efficient features, layout improvements, or additional living space boost long-term value. As buyers increasingly prioritize customization and long-term livability, the ability to incorporate improvements at the time of purchase becomes a meaningful advantage. It allows clients to make informed decisions that blend affordability, comfort, and resale potential.

Why the HomeStyle® Loan fits today’s market needs:

• Helps buyers stay competitive even with limited inventory

• Supports meaningful improvements that increase value over time

• Removes the fear and uncertainty around renovation costs

• Encourages clients to consider homes they might otherwise overlook

By offering flexibility and clarity, the HomeStyle® Loan empowers buyers to make decisions based on potential, not limitations. For those seeking a smarter, more adaptive way to purchase or refinance a home, this loan delivers the balance of practicality and possibility.

Give your clients the advantage of flexible financing

 

   

 

 

 

Enhancing Client Retention Experiences

LEARN MORE

 

Let's Tag Team a Deal!

SEND A LEAD!

 

1% Giveback Program

LEARN MORE