Is HomeStyle a Fannie Mae product?

Yes. HomeStyle Renovation is Fannie Mae's proprietary renovation mortgage product, delivered through approved lenders and guaranteed by Fannie Mae. Freddie Mac's equivalent is CHOICERenovation.

How much can I borrow for renovations with HomeStyle?

Renovation costs are capped at 75 percent of the lesser of purchase price plus renovation costs or the as-completed appraised value for purchases; 75 percent of as-completed value for refinances; and 50 percent of as-completed value for manufactured homes.

Can I do the work myself?

A Do-It-Yourself option exists for one-unit properties, limited to 10 percent of the as-completed value, subject to lender pre-approval of the work and inspection of items costing more than $5,000.

How long do renovations have to take?

All work must be completed within 15 months of loan closing. Exceeding that window requires documented remedies through Fannie Mae's Loan Quality Connect, with extensions capped at 18 months in rare cases.

Can HomeStyle be used with HomeReady?

Yes. The products can be combined, but the stricter rules of each apply; a combined loan must be for a principal residence, and the HomeReady income limits still govern eligibility.

Finance & Fintech

Who Owns HomeStyle Renovation?

HomeStyle Renovation is a conventional mortgage product of the Federal National Mortgage Association (Fannie Mae, OTCQB: FNMA) that finances a home purchase or refinance plus renovation costs in a single loan. Introduced in the mid-1990s, it allows renovation costs up to 75 percent of the lesser of purchase price plus renovation costs, or the as-completed appraised value, and can be used on primary homes, second homes, and investment properties. Lenders must receive special approval to deliver loans before renovation work is complete.

Parent Company

Fannie Mae

Founded

1995

Status

Publicly Traded

Headquarters

Washington, D.C., USA

HomeStyle Renovation Timeline

1938

Fannie Mae

Parent company established in Washington, D.C., USA

Company Founded

1995

HomeStyle Renovation

Founded by Fannie Mae

Founded

mass marketmarket leaderUnited Statesall-consumersOfficial Website

Who Owns HomeStyle Renovation?

Parent Company: Fannie Mae
Ownership Type: Wholly owned
Company Type: Publicly Traded
Stock Ticker: OTCQB: FNMA

Brand	Parent Company	Ownership Type
HomeStyle Renovation	Fannie Mae	Wholly owned

History of HomeStyle Renovation

Founded: 1995
Founders: Fannie Mae

HomeStyle was introduced in the mid-1990s as Fannie Mae's conventional renovation mortgage, predating the widespread availability of home equity credit that later offered alternative renovation financing. The product gave borrowers a first-mortgage route to buy or refinance and renovate in one transaction, positioned against FHA's 203(k) rehabilitation mortgage.

Rules evolved through Selling Guide updates: renovation cost caps set at 75 percent of the applicable value basis (50 percent for manufactured homes), a 15-month completion window (extendable to 18 months only with documented remedies), contractor and draw-management requirements, and a Do-It-Yourself option limited to 10 percent of as-completed value on one-unit properties. Fannie Mae also allows up to six months of principal, interest, tax, and insurance payments to be financed when a property is uninhabitable during renovation.

HomeStyle gained renewed relevance in the 2020s as high mortgage rates and low housing inventory pushed buyers toward fixer-uppers and existing-home improvements rather than new purchases. Its combination with HomeReady created an affordable-renovation path, and energy-efficient improvement eligibility aligned the product with green renovation policy goals.

About Fannie Mae

Who owns Fannie Mae?
Fannie Mae's ownership is complex. The company has been under conservatorship of the Federal Housing Finance Agency (FHFA) since September 2008. The U.S. Treasury holds senior preferred stock representing the government's financial stake. Common stock (FNMA) trades on OTCQB but has limited economic rights under conservatorship. The FHFA appoints Fannie Mae's board of directors, and since March 17, 2025, the FHFA Director serves as Chair of the Board. William J. Pulte currently serves as FHFA Director and Board Chair.

Is Fannie Mae publicly traded?
Fannie Mae's common stock (FNMA) and preferred stock trade on the OTCQB market, but the company has been under FHFA conservatorship since 2008. The common and preferred shares have limited economic rights under conservatorship, and the U.S. Treasury's senior preferred stock takes priority. The board of directors is appointed by FHFA, not elected by shareholders.

What is Fannie Mae's role in the housing market?
Fannie Mae operates in the secondary mortgage market, purchasing mortgages from lenders and packaging them into mortgage-backed securities (MBS). This process provides lenders with cash to make new loans, ensuring that mortgage credit is available to qualified borrowers. Fannie Mae and Freddie Mac together guarantee approximately 70% of new U.S. mortgage originations. Fannie Mae owns or guarantees an estimated 25% of single-family and 21% of multifamily mortgage debt outstanding in the United States.

When was Fannie Mae founded?
Fannie Mae was established in 1938 by the U.S. Congress as part of the New Deal. It was converted to a private shareholder-owned corporation in 1968 and listed on the NYSE. It was placed into FHFA conservatorship in September 2008 following the subprime mortgage crisis.

What is Fannie Mae's net income?
For FY2025 (ended December 31, 2025), Fannie Mae reported net income of $14.4 billion on net revenues of $29.0 billion. This was a decrease of $2.6 billion from FY2024 net income of $17.0 billion, primarily driven by a shift from a credit loss benefit to a credit loss provision and lower fair value gains. Q4 2025 net income was $3.5 billion. The company's net worth was $109.0 billion as of December 31, 2025.

What is the difference between Fannie Mae and Freddie Mac?
Fannie Mae (Federal National Mortgage Association, 1938) and Freddie Mac (Federal Home Loan Mortgage Corporation, 1970) are both GSEs that operate in the secondary mortgage market. Fannie Mae historically purchased mortgages from commercial banks and mortgage companies, while Freddie Mac was created to purchase mortgages from savings institutions (thrifts). Both are under FHFA conservatorship since 2008. Fannie Mae is the larger of the two, with a bigger guaranty book of business.

Will Fannie Mae exit conservatorship?
The Trump administration has expressed interest in ending the conservatorship of Fannie Mae and Freddie Mac, potentially through an IPO. However, the January 2025 SPSPA amendments require Treasury's prior written consent for any termination of conservatorship. FHFA must also conduct a public market impact assessment before requesting Treasury's consent. In June 2026, President Trump stated that he had not ruled out an IPO but added, "It's not a rush." No definitive timeline has been provided.

Founded: 1938
Headquarters: Washington, D.C., USA
Company Type: Publicly Traded
Stock: OTCQB: FNMA
Revenue: $29.0 billion (FY2025 net revenues)
Employees: ~7,500

Visit Fannie Mae website

View full company profile for Fannie Mae

Where Is HomeStyle Renovation Made / Based?

Headquarters: Washington, D.C., USA

HomeStyle Renovation Categories & Tags

Mortgage Renovation Loan Home Improvement Conventional Loans American Brand

HomeStyle Renovation Sustainability & Ethics

HomeStyle explicitly permits energy-efficient improvements, weatherization, and resilience upgrades, aligning the product with Fannie Mae's green housing objectives. By financing improvements to existing housing stock rather than new construction, the product supports neighborhood preservation and infill rehabilitation, key elements of Fannie Mae's affordable housing mission.

Awards & Recognition

HomeStyle is cited by housing policy groups and lender trade publications as the leading conventional renovation mortgage product and the reference design that Freddie Mac's CHOICERenovation mirrored. Its energy-improvement provisions are highlighted in Fannie Mae's sustainable housing materials.

HomeStyle Renovation Recalls & Controversies

Complexity and Delays: The product's draw schedules, contractor requirements, and 15-month completion rule generate frequent borrower complaints about delays and administrative burden, and loans missing the window require remediation through Fannie Mae's Loan Quality Connect.

Limited Lender Availability: Because special approval is required for pre-completion delivery, many lenders do not offer HomeStyle, restricting access relative to standard conventional products.

Cost Overruns: Borrowers bear risk for renovation overruns beyond the loan's contingency reserve, a recurring source of disputes documented in consumer financial complaint records.

HomeStyle Renovation Ownership: Pros & Cons

Advantages

+Single-loan structure bundles purchase or refinance plus renovation at first-mortgage rates, typically cheaper than HELOCs or personal loans
+Conventional flexibility: second homes and investment properties qualify, unlike FHA 203(k)
+Energy-efficiency eligibility gives borrowers a structured path to green renovations
+Fannie Mae's guaranty makes the product deliverable into the liquid MBS market

Considerations

-Fewer lenders offer it due to pre-completion delivery approval requirements
-Renovation caps, draw schedules, and contractor documentation add substantial complexity
-The 15-month completion limit creates repurchase and remedy risk on delayed projects
-Borrowers absorb cost overruns beyond contingencies

Frequently Asked Questions About HomeStyle Renovation

Sources & Further Reading

Competitors to HomeStyle Renovation

These competing brands operate in the same categories and provide similar products or services. Compare key attributes to understand market positioning and competitive landscape.

Brand	Parent Company	Country	Founded	Market Position	Primary Market	Gender Target
Home Possible	Freddie Mac	USA	2015	Market leader	United states	All-consumers
HomeReadySister Brand	Fannie Mae	USA	2014	Market leader	United states	All-consumers
Behr	Masco	USA	1947	Premium	United states	All-ages
Freddie Mac	Freddie Mac	USA	1970	Market leader	United states	All-consumers
Home Depot Tool Rental	Home Depot	USA	1995	Market leader	United states	All-consumers
Lowe's	Lowes	USA (Lowe's Companies)	1946	Market leader	United states	All-consumers