HomeStyle® Energy Loan: How to Fund a Greener Home

Blog posted On May 08, 2025

Have you always dreamed of installing solar panels on your home? Interested in swapping out your regular stove for an induction stove and boosting your home’s energy efficiency? If you’ve been holding off and wondering when you can save up enough to afford eco-friendly renovations, look no further than the HomeStyle® Energy Loan!

HomeStyle® Energy Benefits

Fannie Mae’s flexible financing solution for energy-related improvements! This loan can encompass a wide range of energy-efficient updates, offering affordable and simple options.

• Energy and Water Updates: Air sealing, heating and cooling, and plumbing
• Renewable Energy: Solar panels, geothermal systems, and wind power devices
• Home Resiliency: Storm surge barriers, foundation retrofitting, and natural disaster repairs

Eligibility Requirements & Advantages

• Low down payment options available
• Can finance the loan amount up to 15% of the as-completed appraised property value
• For purchase loans with an LTV greater than 95%, home buyer education will be required for first-time home buyers
• Specific HomeStyle® Energy updates will require a qualified assessor to complete an energy report. Here is a condensed list of improvements that do NOT need an energy report, but please reach out for the full list:
  • Any ENERGY STAR®-certified product
  • Insulation (attic, floors, walls, basement)
  • Air sealing (including weather-stripping and caulking doors and windows, etc.)
  • Heating and cooling (HVAC systems and components, air-source heat pumps, geothermal heat pumps, furnaces, boilers, etc.)
  • Water heaters
  • Solar panels
  • Wind power devices
  • Storm surge barriers
  • And more!

Bundled Benefits

You can easily combine HomeStyle® Energy with other Fannie Mae loans, including HomeStyle® Renovation and HomeReady®.

• HomeStyle® Renovation: Use both HomeStyle® loans together to maintain benefits like a $500 LLPA credit and energy report waiver on ENERGY STAR®-certified improvements while funding additional projects that go beyond energy efficiency
• HomeReady®: A low down payment mortgage that offers lower rates and cancellable mortgage insurance (restrictions apply); combine this mortgage with HomeStyle® Energy to make financing upgrade projects even more affordable

Ready to reduce your carbon footprint through homeownership renovations? We’re happy to offer options for eco-conscious borrowers, and we’re ready to help you get your home retrofitted with energy-efficient updates and improvements.

Source: CNBC, Fannie Mae