Renovation Loans

Renovation Loans: Finance Your Home Purchase & Improvements in One Loan

A renovation loan allows homebuyers and homeowners to finance the cost of home improvements and repairs into their mortgage, rather than taking out separate financing after purchase. Whether you’re buying a fixer-upper or upgrading your current home, renovation loans provide an affordable way to fund repairs, remodels, or even major structural changes.

Types of Renovation Loans

1️⃣ FHA 203(k) Loan (Standard & Limited)

An FHA 203(k) loan is a government-backed mortgage that allows borrowers to purchase or refinance a home and roll in renovation costs.

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Low Down Payment

– As little as 3.5% down.

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Flexible Credit Requirements

– Credit scores as low as 580 may qualify.

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Two Options:

Standard 203(k) – For major renovations, including structural repairs and room additions.Limited 203(k) – For smaller repairs and cosmetic upgrades (up to $35,000 in improvements).

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Best For:

Buyers and homeowners who want to finance both purchase and renovation costs with a low down payment.

2️⃣ Fannie Mae HomeStyle® Renovation Loan

The Fannie Mae HomeStyle® loan is a conventional loan option that allows borrowers to finance home improvements up to 75% of the home’s appraised value after renovations.

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Down Payment as Low as 3% – For primary residences.

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Covers a Wide Range of Renovations – Includes luxury upgrades like pools, landscaping, and energy-efficient improvements.

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Available for Primary, Second Homes, & Investment Properties – Unlike FHA 203(k), which is only for primary residences.

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Best For:

Buyers looking for flexibility in home renovations or who want to finance higher-end improvements.

3️⃣ Freddie Mac CHOICERenovation® Loan

Similar to Fannie Mae’s HomeStyle® loan, this conventional renovation loan allows homebuyers and homeowners to finance upgrades and repairs into their mortgage.

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Up to 95% Financing Available – Based on after-renovation value.

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Allows DIY Work – Borrowers can complete part of the work themselves.

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Flexible Property Use – Can be used for primary residences, second homes, and investment properties.

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Best For:

Buyers who want conventional financing with more flexible renovation options, including self-completed work.

4️⃣ VA Renovation Loan (For Eligible Veterans & Service Members)

The VA Renovation Loan allows eligible military service members, veterans, and surviving spouses to finance home repairs and improvements into their mortgage.

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$0 Down Payment – Like standard VA loans, there is no down payment required.

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Covers Minor & Major Repairs – Can be used for structural and cosmetic renovations.

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No PMI (Private Mortgage Insurance) – VA loans never require PMI, saving borrowers money.

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Best For:

Veterans and military members looking to upgrade a home while keeping 100% financing options.

🔹 Which Renovation Loan is Right for You?

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Buying a fixer-upper with a low down payment?

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FHA 203(k) Loan

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Want to finance luxury upgrades or investment property renovations?

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Fannie Mae HomeStyle® Loan

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Need flexible options for DIY work or second homes?

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Freddie Mac CHOICERenovation® Loan

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Military or veteran looking to renovate with $0 down?

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VA Renovation Loan

Renovation loans

make it easier to afford a home that needs repairs or updates

while keeping financing simple and affordable.

Let’s explore your options and find the best renovation loan for your needs!