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Home Improvement Loans

Finance Your Purchase and Repairs

What are renovation loans?

When you’re house hunting, it’s unlikely you’ll find a home that meets your every desire. But one way to solve this problem is with a renovation loan. A renovation loan can help you pay to customize your new home without dipping into your cash reserves or incurring high-interest credit card debt.

You can also use a renovation loan to buy a distressed home which is below market value. You can buy a home that’s in your price range, renovate it how you see fit, and potentially create instant equity.

What are the benefits of a renovation loan?

  • No out-of-pocket cash expenses on upfront renovations or repairs
  • Expand your home search by including competitively-priced older homes and fixer-uppers
  • Finance your purchase and your renovation projects with one 30-year fixed rate mortgage

Here’s what you can do with a renovation loan:

  • You can possibly qualify for down payments as low as 3% or 3.5% if you’re applying for a FHA 203(k) loan. You may qualify for 0% down if you’re a veteran!
  • You can oversee the renovations and ensure they’re exactly to your specifications
  • You can finance post-closing costs like inspections, permits, and more
  • You can finance up to 6 months of mortgage payments into the loan itself. For more involved projects that prevent you from living in your new home, this can help you avoid paying mortgage payments and rent/hotel fees simultaneously

Home Renovation Loan Options

FHA 203(k)

  • Limited: For smaller projects with a total cost under $35,000. Excludes structural renovations
  • Standard: If the total project cost is over $35,000 and structural repairs will be performed. Low down payment of 3.5% of the total acquisition cost for single family or multi-family homes (up to four units)

Fannie Mae Homestyle & Freddie Mac Choice Renovation

  • Down payments starting as low as 3% of the total acquisition cost
  • Both programs can be applied to a single investment property or vacation home


  • Veterans can qualify for 100% financing
  • Designed for small renovation projects under $35,000 (excludes structural repairs)