Did you find a terrific house in your desired neighborhood, but it needs some updating? With various loans available to borrowers in Eugene, it’s possible to make 2021 the year that you take on a fixer-upper. Read on to learn about why you should consider using a Fannie Mae HomeStyle loan for your home renovation.

Homestyle Loan Basics

Let’s begin by looking at the basics of a Fannie Mae HomeStyle loan. Essentially, a Fannie Mae HomeStyle loan allows you to incorporate the purchase and renovation of a home into one mortgage payment. The ability to use one loan to buy and renovate a property means that you can

  • Qualify for one loan
  • Save money on loan fees
  • Pay for a single loan each month

As you can see, the convenience offered by a HomeStyle loan makes it easier to turn a weary house into a fabulous one. There is an amazing selection of benefits that come with taking out a HomeStyle loan. Let’s look at some of the major perks of this type of home financing.

HomeStyle Renovation Loan Benefits

Along with the ease of a single loan, there are other significant reasons to consider this kind of home loan. One of the best reasons to look at a Fannie Mae mortgage is that it comes with a federal government guarantee. Since home mortgages backed by the government carry less risk for the bank, you’ll find it’s often easier to obtain one if you qualify.


Can you come up with a five percent down payment for your dream property? If so, a HomeStyle mortgage is well within your range. Interest rates are often advantageous for this type of mortgage. You’ll also save money by paying for one set of closing costs and one monthly mortgage payment.

Renovation Flexibility

Does your dream home include a luxurious master suite? An exciting aspect of a HomeStyle loan is that you can work with your contractor to include fun extras like spa-like baths and swimming pools in your renovation project.

There are almost no barriers to the types of improvements you can make using the loan as long as it increases the property’s value. Generally, all renovations must finish within one year of receiving the loan.

Unlike many loans, financing through HomeStyle gives you the option of using the program for a primary, investment, or vacation residence. You get to decide where to use the loan. The loan can finance repairs to all sorts of buildings, from a cozy cottage to a small, downtown apartment building.


In a fantasy world, renovation/mortgage loans would be super easy to obtain, have an unbelievably low interest rate, and come without any restrictions. Of course, as with nearly all things in life, a perfect loan doesn’t exist in the real world. Examples of some potential downsides include the following:

  • Tough qualifications
  • Limited availability
  • Lengthy closing period

The fact that the HomeStyle renovation loan is a Fannie Mae product means that you can usually obtain one if you qualify. However, the qualification standards are more demanding for this loan than for other government-backed mortgages. For example, there is a stricter debt-to-income ratio and a higher minimum credit score for borrowers.

Renovations That Make Sense

Before you begin filling out an application for a Fannie Mae HomeStyle renovation loan, it makes sense to consider how you will spend the money. There’s no denying that home remodeling projects are pricey. Taking time to determine how you want to upgrade a property helps ensure that you make an intelligent investment.

Remodeling is a terrific source regarding the return-on-investment that you can anticipate from a particular project. For example, a garage door replacement is one of the most cost-effective ways to improve your property.

Your real estate agent is also a great source of information regarding renovations that will upgrade your house to the standard seen in a Eugene neighborhood. Why spend money putting in a deluxe kitchen, for instance, if most houses in your area feature mid-level kitchens?

Last Thoughts

Lastly, the Fannie Mae HomeStyle loan is a marvelous way to finance a home renovation. The financial benefits and flexibility offered by this kind of home financing can make buying a home in Eugene, OR, an achievable dream.

Contact the experienced home loan officers at Strategic Mortgage Solutions for help with your home and renovation loan needs. We promise to take the time to match your housing goals and budget with outstanding home loans.