A HomeStyle Renovation is a Conventional Loan that allows you to purchase a home in need of repairs. If you are a first time homebuyer, you can borrow up to 97% of the sales price plus repairs, as long as the home appraises for the sales price plus repairs. If not a first time buyer, 95% is the max you can borrow. A credit score of 680 is required for this program. When calculating the maximum repairs/improvement allowed, take the sales price and multiply by 75%. Example, sale price $150,000, maximum allowed repairs ($150,000 x 75% = $112,500). Based on this scenario, the loan would be based on $262,500. First time homebuyer could borrow $254,625 and if not a first time buyer, the maximum allowed to borrow is $249,375.