Fannie Mae HomeStyle Renovation Loan in Philadelphia

HomeStyle Renovation is Fannie Mae's renovation mortgage. Like the 203k, it finances the home and the renovation in one loan based on the as-completed value. Because it's a conventional loan, it plays by different rules: higher limits, fewer restrictions on what you can build, and private mortgage insurance that goes away as you build equity.

In Philadelphia, the 2026 conforming limit is $832,750 for a single-family home, compared with an FHA limit of $630,200. That gap matters in Fishtown, Graduate Hospital, East Passyunk, Chestnut Hill, and the Montgomery and Delaware County suburbs, where the purchase price plus a real renovation regularly runs past the FHA limit.

Why buyers choose HomeStyle

• Higher limits. Up to $832,750 (1-unit) in the Philadelphia metro, and more for 2–4 units.
• Cancelable mortgage insurance. PMI can come off as the loan balance drops. FHA mortgage insurance usually stays for the life of the loan.
• Few limits on the work. Anything permanently attached that adds value qualifies, including items FHA won't finance, like a pool or high-end finishes.
• More property types. Primary residences (1–4 units), second homes, and 1-unit investment properties.
• Refinance option. Renovate the home you already own without a separate HELOC.

How much you can borrow for the renovation

On a purchase, renovation costs can be up to 75% of the lesser of the purchase price plus renovation costs, or the as-completed appraised value. On a refinance, the renovation can be up to 75% of the as-completed value. The work generally must be completed within 15 months of closing.

Qualifying

Expect conventional credit standards. Most HomeStyle borrowers we work with have scores in the upper 600s or higher. Down payments start at 3% for eligible first-time buyers on a 1-unit primary residence and 5% for most other primary-residence purchases. Second homes and investment property require more.

HomeStyle in Philadelphia

In Greater Philadelphia, the question that most often sends a buyer to HomeStyle is simple: does the purchase plus the renovation pass $630,200? In a lot of the city's in-demand neighborhoods and inner suburbs, it does. HomeStyle's 2026 conforming limit of $832,750 for a single-family home gives those buyers room the FHA program can't.

Where it fits best

• Fishtown, Graduate Hospital, Northern Liberties, Queen Village, and Fairmount. Higher purchase prices, larger renovations, and finished values that support them.
• Chestnut Hill and Mount Airy. Large stone homes with original systems, slate roofs, and kitchens that need a full redo.
• Ardmore and Lower Merion, Havertown, and West Chester. Main Line and borough prices, where kitchen and primary suite renovations and additions are the usual scope.
• 1-unit rentals. HomeStyle is the only one of these programs that works on a 1-unit investment property, so it fits a buyer renovating a rowhome to rent out, with a larger down payment.

A worked example

A buyer finds a dated three-story rowhome in Graduate Hospital for $560,000. The plan: two new baths, a new kitchen, a roof deck, and full systems. The bid is $170,000.

• Purchase: $560,000
• Renovation: $170,000
• Contingency at 10%: $17,000
• Total: $747,000
• 5% down: $37,350
• Loan: $709,650

On FHA, even 96.5% of $747,000 would be about $90,655 over the $630,200 limit. On HomeStyle, the loan fits under $832,750. The renovation is about a quarter of the total, well below HomeStyle's 75% cap. If the buyer qualifies for 3% down as an eligible first-time buyer, the down payment drops to $22,410 and the loan is $724,590, still under the limit.

Illustration only. Your numbers depend on the appraisal, the bid, and your qualification.

Local rules and timing

HomeStyle doesn't require a HUD consultant, so your contractor's itemized bid carries more weight. In the city, the contractor pulls permits through L&I. In Montgomery, Delaware, Chester, and Bucks counties, the township or borough issues them. Much of Old City, Society Hill, Queen Village, Rittenhouse, Spring Garden, and Chestnut Hill sits in local historic districts. Exterior work and roof decks visible from the street may need Historical Commission review. West Chester's historic borough can have its own review for exterior work.

The work generally must be finished within 15 months of closing. The clock starts at settlement, so start any historic review during the loan process.

Common pitfalls

• Over-improving for the block. The appraiser values the finished house against nearby sales. A roof deck and chef's kitchen have to be supported by comparables.
• Condo approval. In Northern Liberties and Old City, the building must meet conventional project standards first. See condo renovation loans.
• Assuming FHA is cheaper. Run both. See 203k vs. HomeStyle in Philadelphia.

Compare

Freddie Mac's version, CHOICERenovation, works almost the same way and occasionally prices better. If your credit or down payment is tight, start with the FHA 203k.

Frequently asked questions