Florida HomeStyle Renovation & Rehab Mortgage Financing Loan

The HomeStyle Renovation & Rehab Mortgage Loan enables borrowers to obtain a purchase mortgage or a refinance mortgage for a primary residence, second home or an investment property!

Florida HomeStyle Renovation & Rehab Mortgage Financing LoanDown Payment Requirements

  • 5% Down Payment for a purchase & 95% LTV for refinancing of one-unit primary residences.
  • 15% Down Payment for a purchase & 85% LTV for two-unit primary residences.
  • 10% Down Payment for a purchase & 90% LTV for refinancing of second homes.
  • 15% Down Payment for a purchase & 75% LTV for refinancing of investment properties.

HomeStyle Renovation & Rehab Mortgage Property and Borrower Eligibility Requirements

  • The property must be at least one year old.
  • Maximum Loan Amount is $453,100 unless county loan limits support a higher loan amount.
  • Minimum Credit Score 620.
  • The borrower may not be employed by or related to the contractor or company doing the renovation.
  • Primary residences, second homes, and investment properties are permitted.
  • Second Homes and Investment Properties have a Maximum limit of 4 properties with mortgages.
  • Gifts of equity are not permitted.
  • 1-4 units for primary residences, 1 unit second homes, and 1 unit investment properties.
  • Condos are eligible.
  • Maximum Cost of Renovations is 50% of the total appraised completed value.
  • No Minimum Cost of Repairs.
  • There are no restrictions on the types of renovations.
  • A Renovation Consultant (HUD Fee Consultant) must be used to assist with managing the project and draw requests when the repairs or renovations will exceed $15,000, or any structural work is required.
  • All renovation work must be performed by a licensed contractor. 
  • The maximum loan amount on a purchase is the lesser of the total purchase price plus improvements or the appraisers “as completed” value (after improvements).


Ineligible HomeStyle Renovation & Rehab Mortgage Home Repairs:

  • Do It Yourself repairs are not allowed.
  • Repairs that would require more than nine months to complete or that will result in the work not beginning within 30 days of closing.
  • Demolishing of an existing home and rebuilding.
  • Replacement of an old/damaged foundation.

Contractor Payment Schedule 

When the rehab repair costs are less than $15k nothing is disbursed to the contractor at closing. When the borrower signs off that the work has been 100% completed the contractor will receive 90% of the total renovation cost and then the final inspector is sent out to verify all work is completed then the remaining 10% is disbursed to the contractor. When the renovation costs are more than $15,000 the HUD inspector will determine the number of draws the contractor will be allowed.

Renovation Contract Must Include 

  • Itemize the specific work that the contractor agrees to perform for the borrower.
  • State the agreed-upon cost of the renovation.
  • Identify all subcontractors and suppliers.
  • Include an itemized description that establishes the schedule for completing each stage of the work and the corresponding payments to be made to the contractor.

Renovation & Rehab Contractor Requirements

  • Contractor Acceptance Form must be completed.
  • Signed and dated W-9.
  • Certificate of Liability Insurance.
  • Copy of the Contractors license.
  • The contractor has been in business for at least 3 years.
  • The contractor’s primary employment corresponds with the work to be completed.
  • The contractor has completed projects of similar scope within the last few years.
  • The contractor has experience with projects financed by FHA 203(k) or a Fannie HomeStyle mortgage.
  • A maximum of five draws is allowed. 
  • No upfront disbursements to the contractor at closing are permitted. 
  • The lender will hold back 10% of every draw request, which the contractor will receive upon approval of the final draw request.
  • If there is an increase in costs during the renovation period, the amount of the increase must be funded by us or the borrower because the loan amount cannot be increased. 

Renovation & Rehab Closing Costs & Fees That Are Financeable

  • Property inspection fees.
  • Costs and fees for the title update.
  • Architectural and engineering fees.
  • Independent consultant fees.
  • Costs for required permits.
  • Other documented charges, such as fees for energy reports, appraisals, review of renovation plans, and fees charged for processing renovation draws.
  • The 10% contingency reserves.

When a property is located, the homebuyer and their real estate professional should make a marketability analysis prior to signing the sales contract and the following should be determined

  • The extent of the rehabilitation work required.
  • A rough cost estimate of the work.
  • The expected market value of the property after completion of the work.
  • The sales contract must include a provision that the borrower has applied for HomeStyle Renovation financing.


We offer loans for the entire state of Florida and all of the following cities;
Monroe County Florida Cities; Big Pine Key, Islamorada, Key Colony Beach, Key Largo, Key West, Long Key, Marathon, Marathon Shores, Sugarloaf Shores, Summerland Key, and Tavernier
Collier County Florida Cities; Marco Island, Naples Golden Gate, Lee County Florida Cities: Alva, Boca Grande, Bonita Springs, Buckingham, Captiva, Cape Coral, Fort Myers, Fort Myers Beach, Lehigh Acres, Sanibel. Jacksonville, Tampa, Saint Petersburg, Hialeah, Orlando, Fort Lauderdale, Tallahassee, Hollywood, Pembroke Pines, Miami, Palm Beach, West Palm Beach, Boca Raton, Miramar, Sarasota, Gainesville, Bradenton

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Thanks and we look forward to working with you on your mortgage needs!

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