Buy a older Home with a Renovation Loan

House to Home with a
Renovation Loan

If you are buying a home that needs minor or major repairs, a renovation loan can help you include the costs of renovations in the original loan amount. Homeowners can also use the renovation loan in place of a cash-out refinance for home improvement projects.


  • Ease: Finance the costs of your project into your loan with one simple payment
  • Vision: Tailor your upgrades to fit your lifestyle and desires
  • Customize: Refinance and breathe new life into your existing home or upgrade the property you are purchasing

Ways You Can Use a Renovation Loan 

  • General replacement of electrical, HVAC, plumbing, installation of well and/or septic tanks
  • Aesthetic changes and upgrades such as new siding, paint, and landscaping
  • Elimination of health and safety hazards such as lead-based paint and mold
  • Functional improvements such as remodeled kitchens and baths
  • Finishing a basement or raising a roof
  • Structural improvements - changes or additions
  • Installing accommodations for handicap access
  • Adding, repairing or reroofing a garage
  • Repairing or replacing a deck
  • Repairing a swimming pool
  • Completely rebuilding a home on a modified existing foundation

Note: Allowable renovations may vary depending on the renovation loan type.

Our Renovation Loan Offerings

HomeStyle® Renovation203(k) Limited Renovation203(k) Full Renovation
Repair Limit Up to 75% $35,000.00 No repair limit
Allowed with any home purchased? Yes Yes Yes
What type of repairs can this be used for? Landscaping improvements
permanently affixed.
Complete flooring, cabinets, fixtures and trim on newly constructed homes.
Kitchen remodel and updating, window
and door replacements, replacement of roof shingles, weatherization. Non-structural repairs.
Full kitchen remodel, structural alterations
and additions, permanent improvements to the house. *Major foundation and/or structural repairs.
Property Types Allowed 1 - 4 units, Manufactured homes, and Condos 1 - 4 units, Manufactured homes, and Condos 1 - 4 units, Manufactured homes, and Condos
Maximum Loan to Value Up to 97%**
(3% down payment from borrower)
(3.5% down payment from borrower)
(3.5% down payment from borrower)
Minimum Credit Score 620 580 580

*Builder risk insurance may be required. **For LTV between 95.01% to 97%, additional condition will apply.

HomeStyle® is a registered trademark of Fannie Mae. Mortgage limits may vary per City, County, or State.

Our products and services have no affiliation with or endorsement from any government agency or body. On a FHA 30-year Fixed rate purchase with loan amount $343,328 (at 96.5% LTV and 3.5% down payment from borrower) at an interest rate of 4.00% with 0% discount point (Annual Percentage Rate - 4.9840%), you will be required to make 360 equal monthly payment of $1639.10 (which includes principal and interest only, so your actual payment, including taxes, insurance and other property charges, will be higher).

* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.