What’s the Difference Between FHA 203(k) and Fannie Mae HomeStyle® Renovation Loans?









As housing inventory remains below housing demand, it may make sense to stay in your current home. Not all renovations need to be a major re-haul. There are renovation loan programs designed to meet the needs for cosmetic improvements, structural repairs, and everything in-between – even for a pool! Discover below details on a few renovation loan programs available.

FHA 203(k) Mortgage Loan

A FHA 203(k) loan is a government loan program backed by the Federal Housing Administration (FHA) and includes a fully disbursed first mortgage with escrow established for repairs and renovations. Examples of eligible improvements include:

  • Additions
  • Kitchen and bath remodeling
  • Flooring
  • Replacing mechanical systems or appliances
  • Windows
  • Siding
  • Roofing
  • Garages
  • Decks
  • Enclosed porches

FHA 203(k) loan programs are offered in two different loan types to best fit your renovation needs. Loan types include the Standard 203(k) loan and the Limited 203(k) loan. A Standard 203(k) loan allows for extensive projects to be completed including additions. A Limited 203(k) loan, also known as a “streamlined” 203(k) loan, involves simple, non-structural repairs and renovations up to a maximum of $35,000.

Fannie Mae HomeStyle® Mortgage Loan

A Fannie Mae HomeStyle® mortgage loan is available only from a Fannie Mae-approved lender. The HomeStyle® loan program provides the flexibility to complete a wide array of upgrades and repairs so long as the improvement is affixed to the property. Eligible improvements include the same as a FHA 203(k) loan as well as added luxury improvements such as pools, outdoor kitchens, accessory units, etc.

Different from the FHA 203(k) mortgage loan, the Fannie Mae HomeStyle® loan program offers options for second homes, vacation homes and investment properties.

Whether you’ve signed a contract to purchase a house or want to fix up your existing home, our team can help you turn your house into your perfect home. Contact our team today to learn more!