In December, Fannie Mae modified its HomeStyle product to better reflect new government environmental policies. This change involved rebranding the HomeStyle Energy program as HomeStyle Refresh, providing homeowners with more flexibility for how they use their borrowed funds.
What's Changed With HomeStyle Refresh?
"The most obvious change is a rebranding of the HomeStyle Energy product, which was designed to help borrowers increase the energy efficiency of their home and reduce utility costs," reports Inside Mortgage Finance (IMF) in an e-newsletter. "Homeowners could borrow up to 15% of the as-completed appraised value of the home to finance projects such as upgraded energy and water systems, installation of solar equipment, or paying off energy-related debt.
Now, since being rebranded as HomeStyle Refresh, the program has pivoted its focus from energy-efficient upgrades and to a broader range of small home renovations.
HomeStyle Refresh hasn't eliminated its predecessor's green offerings, though: "HomeStyle Refresh supports a wide range of improvements as part of a purchase or refinance mortgage — from cosmetic updates to energy-saving and resilience-focused renovations — giving borrowers the flexibility to personalize their homes," reports Fannie Mae.
So, homeowners can still carry out energy efficiency upgrades using these loans, but are free to use the proceeds to finance other home improvements instead. Fannie Mae's website now includes a search engine that allows homeowners to find local funding to "offset costs for energy, water, and resiliency improvements."
So far, Freddie Mac's equivalent, the GreenCHOICE Mortgage®, remains in place, though changes could occur as we move through 2026 if the agency also adjusts its policies to align with current government priorities.
Is HomeStyle Refresh A Good Option?
HomeStyle Refresh is most likely to appeal to those buying a home that requires a limited amount of work. It could also be attractive to someone who is already thinking of refinancing their mortgage to a lower rate and would like to carry out some home improvements.
These loans are less likely to appeal to someone currently paying a lower mortgage rate than the one they qualify for now. That would mean a refinancing of their entire mortgage balance, and most will probably find that using a home equity loan or HELOC to fund home improvements would be less costly in the long run.
With a HomeStyle Refresh mortgage, an appraiser will value the home being refinanced or purchased based on its anticipated value after the proposed improvements have been carried out.
"With HomeStyle Refresh, borrowers can finance up to 15% of their home's future value to make it more comfortable, resilient, and cost-effective — all rolled into one mortgage," says Fannie Mae. Keep in mind, however, that borrowers and homes must still exceed the minimum qualifying standards set by Fannie Mae and their chosen lender.
