HomeStyle loans are guaranteed through Fannie Mae and have a more restrictive credit score minimum (680), down payment (5%), and debt-to-income ratio (45%) than a 203K. However, they have much more relaxed restrictions on the types of renovations that can be done. Funds can be used to remodel a primary, secondary, or investment property. And they can be used to finance a wide range of renovation projects, from repairs and modifications to pools and outdoor kitchens. Borrowers can use the funds to restore an old home to its original glory or take a neglected house and make it their dream home. Mortgage limits are capped depending on the area a home is located in. See the current conforming loan limits. There is no upfront MIP, but without 20% equity in the renovated home, a borrower will have to pay monthly MIP payments for a period (or until they reach 20% home equity).