As announced in SEL 2025-10, Fannie Mae has introduced HomeStyle Refresh, a rebranded version of the HomeStyle Energy mortgage. Pennymac will continue to align with the guidance outlined below under the “Refresh” rebrand, effective for loan applications dated on or after March 31, 2026.
Pennymac will continue to allow the following HomeStyle Refresh (previously Energy) for Delegated clients:
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Payoff of non-PACE secured or unsecured debt that financed energy-related improvements: Eligible for limited cash-out refinances up to 15% of the appraised value of the property. The improvement debt must be paid off in full. Partial payoffs are not permitted.
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Payoff of existing PACE loan: Eligible for purchases or limited cash-out refinances: all outstanding PACE debt may be paid off up to the maximum allowable LTV for the transaction and occupancy type. The PACE loan must be paid off in full. Partial payoffs are not permitted.
New! Special Feature Code (SFC) 892 HomeStyle Refresh is required
Refer to the Fannie Mae “standard” product profile for complete requirements.
Note: All other guidance pertaining to HomeStyle Refresh announced in SEL 2025-10 is ineligible for purchase by Pennymac, including but not limited to loans for improvements and renovations. Approved clients may continue to utilize Pennymac’s HomeStyle Renovation program for these transactions.
Fannie Mae’s Desktop Underwriter was updated the weekend of March 21, 2026, to support these changes. DU will flag the loan casefile as a HomeStyle Refresh loan if “HomeStyle Refresh” is entered in the Product Description field and will determine if the costs exceed the 15% limit.
Please contact your Sales Representative with any questions.