Short answer
Often, yes. Fannie Mae's HomeStyle Refresh adds smaller updates, like a kitchen or bath, an accessory unit, or energy, water or radon work, to a purchase or limited cash-out refinance, with the work finished within 180 days. FHA's Energy Efficient Mortgage adds cost-effective energy improvements recommended by a home energy assessment, and that added amount isn't counted when your debt ratios are figured.
What is HomeStyle Refresh?
It's a Fannie Mae option for smaller-scale improvements to an existing 1 to 4 unit home, described in Selling Guide B5-3.3-01. It works with standard conventional loans, including HomeReady and down payment assistance programs, for any occupancy type. Eligible work includes:
- Kitchen and bathroom updates, decks, porches, patios and pools where zoning allows.
- Adding or renovating an accessory dwelling unit.
- Energy or water efficiency upgrades.
- Fixing or reducing environmental hazards like asbestos, lead, mold and radon.
- Disaster repairs and work that protects the home from future damage.
The improvement amount can be up to 15 percent of the home's as-completed appraised value.
How does a HomeStyle Refresh loan work?
- The appraiser values the home as it will be once the work is done, using your plans.
- The lender holds the improvement money in a completion escrow and can release up to half of the planned cost at closing, partly for permits and design.
- The work must be finished within 180 days of the note date, confirmed by a completion report.
- Before the final payment, the lender updates title to confirm there are no contractor liens.
On a limited cash-out refinance, it can also pay off a loan you used for earlier energy improvements. Bigger projects usually fit a full renovation loan better.
What is an FHA Energy Efficient Mortgage?
HUD Handbook 4000.1 lets an FHA purchase or no cash-out refinance include an energy package: improvements you choose from a home energy assessment by a qualified rater. Key points:
- The package must be cost-effective, meaning it costs less than the energy it's expected to save over its useful life.
- Your debt ratios are figured on the loan without the energy package.
- The package can push the loan above the FHA limit for the area, up to a HUD cap.
- Work not done at closing goes into escrow and is generally installed within 90 days. Your own labor can't be paid from it, and you can't take cash out.
It also works with FHA 203(k) renovation loans and on new construction for upgrades beyond the building code.
Why does this matter in New Hampshire?
Heating can be a big cost in an older NH home. Insulation, air sealing or a heat pump can lower that cost; see the NH home heating guide. NHSaves offers rebates on efficient equipment, and federal energy tax credits ended for work after 2025 (see what changed).
Sources
- Fannie Mae Selling Guide B5-3.3-01, HomeStyle Refresh Improvements for Existing Properties
- HUD Single Family Housing Policy Handbook 4000.1, Update 18 (August 2026), Energy Efficient Mortgages
- NHSaves, Electric equipment rebates
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.