Renovation Mortgage
Buy a home and fund your renovations — all in a single convenient loan.
What is a Renovation Mortgage?
A renovation mortgage combines the cost of purchasing a home with the funds needed for renovations into a single loan. Instead of taking out a separate personal loan or home equity line of credit for improvements, renovation loans streamline the process. Common programs include FHA 203(k) and Fannie Mae HomeStyle, each offering different levels of renovation scope and eligibility requirements.
Who It's For
Renovation loans are perfect for buyers interested in fixer-uppers or homes that need updating before move-in. They're also a great option for existing homeowners who want to refinance and roll renovation costs into their new loan. This loan type is popular in competitive markets where move-in-ready homes carry a premium.
Key Benefits
- Combine purchase price and renovation costs into one loan
- Only one closing, one application, one monthly payment
- Finance both structural and cosmetic renovations
- Borrow based on the after-renovation appraised value
- Available as FHA 203(k) or conventional HomeStyle options
- Great for buying below-market fixer-uppers and building equity quickly
Eligibility Requirements
- Credit score requirements vary by program (580+ for FHA 203k, 620+ for HomeStyle)
- Property must be a 1–4 unit residential property
- Renovation work must begin within 30 days of closing
- All contractors must be licensed and insured
- Renovation plans must be approved prior to closing
- Luxury items and non-permanent improvements generally not covered
Ready to Get Started?
Talk to Adele about whether a Renovation Mortgage is right for you.
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