203k and HomeStyle Renovations Loans

There are two primary ways to purchase a home and get the money to improve the home.

Click the links to learn more

FHA 203k

FHA's very popular 203k rehab loan allows you to buy a home and get the money for repairs all in one loan. There are two versions of the program:

1) Streamline 203k (smaller projects, amounts under $35,000)

2) Full 20k (larger projects, amounts over $35,000

Click here to visit our detailed FHA 203k page.

The Fannie Mae Homestyle rehab loan is very similar for the older FHA 203k rehab loan. Both rehab loans allow you to purchase and get the money to repair a home in one loan.

Go to The HomeStyle Renovation Loan Page

Both programs are extremely similar, and the information on for both renovation loans are very similar. 

HomeStyle is not automatically better than a 203k loan, and a 203k loan is not automatically better than a Homestyle rehab loan.  Talk to one of our experienced rehab loan experts to determine which rehab loan may be better in your individual situation.

Two main differences for HomeStyle vs FHA 203k:

1) Higher Loan Limits in many areas compared to FHA loans. For example, in the Twin Cities area of Minneapolis and St Paul (where my office is located), the maximum FHA loan is $448,400 for a single family home, while the maximum conventional loan is $647,200 (current as of Nov 2022).

Click here to see Loan Limits where you live.

2) Repair requirements are slightly different. Homestyle is a conventional loan, and therefore some items that may be a mandatory repair for the FHA 203k, like peeling paint, are not mandatory repairs on a conventional loan.

For example, on any home older than 1978, there is possible lead in the house paint. Any peeling paint is required to be fixed as part of the rehab on an FHA loan, while the HomeStyle loan does not care about peeling paint.

3) FHA 203k down payment is just 3.50%, while HomeStyle is 3%, but you get much better deals with 5% down (or more)