Roll renovation costs into your purchase or refinance loan, based on the home's after-improved value.
Overview
Renovation loans (FHA 203(k), Fannie Mae HomeStyle, and similar) let you finance both the purchase price (or current payoff) and the cost of renovations in a single mortgage. The loan amount is based on the property's projected value after improvements, not its current condition.
It's a powerful tool for buying a fixer or improving a recently-purchased home without using high-rate construction or personal loans. The trade-off is more paperwork: contractor bids, plans, draw schedules, and inspections during the rehab.
Who it's for
What's typically reviewed
This is a general description, not a guarantee of approval. Specific requirements vary by lender and program. Final qualification is determined during underwriting.
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