HomeStyle Renovation Loans

The HomeStyle Renovation program allows borrowers to combine the purchase or refinance of a home with the costs to renovate or extensively remodel the property. At closing all funds for renovation will be escrowed in an interest earning account. After all renovation work is complete, any remaining funds in the renovation escrow account will be used to pay down the principal balance of the mortgage. Soft costs such as architectural services, engineering and permit fees may be financed. Full builder/contractor third-party contracts only, this cannot be used if doing the renovations yourself. This program may be used to purchase or refinance a primary residence, investment property or second home.

For purchase money mortgages, the maximum mortgage amount is based on the lesser of the “as completed” appraised value or the sum of the sales price of the property and the cost of the improvements. For refinance mortgages, the maximum mortgage amount is based on “as completed” appraised value multiplied by the loan-to-value ratio and may include the payoff of eligible liens, renovation costs (including “soft” costs), points, prepaid items, and if applicable, the contingency reserve and any payment reserve. The renovations may represent up to 50 percent of the “as completed” appraised value.

This is offered as a 15 or 30 year fixed rate mortgage, no balloon or pre-payment penalties. Renovation work must be completed within the first 12 months after closing.

The lending process for your renovation loan involves the following steps:

  1. 1. Contractor approval
  2. 2. Project approval
  3. 3. Credit underwriting and loan approval
  4. 4. Loan closing
  5. 5. Drawing funds during renovation to reimburse the builder for work as it is completed
  6. 6. Completion of renovation

Minimum Loan Amount: $100,000
Max Loan Amount: $453,100

Primary Residence (1-unit)

Max Loan to Value: 95%
Minimum Credit Score: 700

Second Home (1-unit)

Max Loan to Value: 80%
Minimum Credit Score: 680

Investment Property (1-unit)

Max Loan to Value: 75%
Minimum Credit Score: 720 for W-2 employees, 740 for self-employed

Please contact a HomeWay Mortgage loan officer at 281-565-8500 for more details. Or apply online at

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