Embarking on a renovation journey with FHA 203(k) and Fannie Mae HomeStyle loans opens up a world of possibilities for homeowners in Metro Detroit and Michigan. These loan programs offer the flexibility to finance a wide range of improvements, allowing homeowners to transform their properties into dream homes. In this blog post, we’ll explore the eligible improvements for both FHA 203(k) and Fannie Mae HomeStyle loans, providing valuable insights for homeowners considering renovation projects.

3d rendering of paint roller on white wooden floor and dark "REALITY" sign drawn over pink "DREAM" sign on white wall background

Eligible Improvements for FHA 203(k):

FHA 203(k) loans offer homeowners the opportunity to finance a variety of improvements, including but not limited to:

  1. Changes to improve function/modernization, such as bathroom and kitchen remodels.
  2. Converting a single-family property to a 2, 3, or 4-unit dwelling, or vice versa.
  3. Elimination of health and safety hazards, such as lead-based paint or mold remediation.
  4. Creating accessibility for persons with disabilities, ensuring everyone can enjoy the home comfortably.
  5. Interior and exterior painting to enhance the aesthetics of the property.
  6. Landscaping that adds permanent value to the property or addresses fire, health, or safety concerns.
  7. Structural alterations or additions, including room or garage additions, finishing attics or basements, and repairing termite damage.
  8. Rehabilitating, improving, or constructing a garage to provide additional storage space.
  9. Repairing or replacing flooring and appliances to update the home’s interior.
  10. Repairing or replacing roofing, siding, windows, doors, gutters, and downspouts to enhance curb appeal.
  11. Repairing, replacing, or upgrading plumbing, heating, air conditioning, and electrical systems to ensure the home’s functionality.
  12. Repairing or removing an in-ground swimming pool to improve safety or repurpose the space.
  13. Installing or repairing wells, septic systems, or connecting to public water and sewage systems to ensure proper utility access.
  14. Reconstructing structures without affecting the existing foundation or elevating existing foundations without demolishing the structure.
  15. Purchasing an existing structure on another site, moving it onto a new foundation, and renovating it to meet modern standards.
  16. Installing or repairing fences, walkways, driveways, exterior decks, patios, and porches to enhance outdoor living spaces.

Allowable Improvements for Fannie Mae HomeStyle:

Fannie Mae HomeStyle loans also offer homeowners the flexibility to finance various improvements, including, but not limited to:

  1. Repairs, remodeling, renovations, or energy improvements to the property.
  2. Any renovation or repair permanently affixed to the real property, including both dwellings and land.
  3. Purchase of appliances as part of the overall remodeling project.
  4. Construction of various outdoor buildings and structures according to local zoning regulations, such as accessory dwelling units, garages, recreation rooms, and swimming pools.
  5. Completion of the final work on newly built homes, including installation of flooring, cabinets, kitchen appliances, fixtures, doors, and trim, as long as the cost to complete does not exceed 10% of the after-improved value and the remaining improvements are non-structural.
  6. Repair of damages from natural disasters and installation of preventative items, such as storm surge barriers, foundation retrofitting, hazardous brush and tree removal in fire zones, and retaining walls.

Understanding these eligible improvements is essential for homeowners planning renovation projects. By leveraging FHA 203(k) and Fannie Mae HomeStyle loans, homeowners can breathe new life into their properties and create spaces that reflect their unique style and needs. If you have any questions or need assistance with your renovation plans, feel free to reach out to us. We’re here to help you every step of the way.