Renovation Mortgage Options

Embarking on a home renovation project can be an exciting yet challenging endeavor, especially when it comes to financing. Fortunately, several renovation mortgage options are available to help turn your vision into reality. Here’s a brief overview of popular programs like the FHA 203k, Fannie Mae HomeStyle® Renovation, VA Renovation loan for veterans, and Freddie Mac CHOICERenovation loan.

  1. FHA 203k:
    • Ideal for: Homebuyers and homeowners looking for government-backed loans with a lower down payment.
    • Features:
      • Two versions – Limited 203k for minor repairs and Standard 203k for more extensive renovations.
      • All-in-one loan covering purchase or refinance and renovation costs.
      • Flexible credit requirements.
      • Streamlined process with one loan closing.
  2. Fannie Mae HomeStyle® Renovation:
    • Ideal for: Those seeking conventional financing with flexibility in renovation choices.
    • Features:
      • Purchase or refinance options.
      • Renovation funds included in the mortgage.
      • Can be used for various projects, from simple repairs to major upgrades.
      • Competitive interest rates and flexible down payment options.
      • Eligible for primary residences, second homes, and investment properties.
  3. VA Renovation Loan:
    • Ideal for: Eligible veterans, service members, and their spouses seeking a government-backed loan with renovation financing.
    • Features:
      • Available for both purchase and refinance.
      • Financing for home improvements, energy efficiency upgrades, and more.
      • Competitive interest rates.
      • No down payment required (subject to VA loan limits).
      • Streamlined process for minimal hassle.
  4. Freddie Mac CHOICERenovation:
    • Ideal for: Homebuyers and homeowners wanting a conventional loan with renovation financing.
    • Features:
      • Purchase or refinance options.
      • One loan, one closing for simplicity.
      • Flexible renovation budget based on the property’s value after improvements.
      • Can be used for a wide range of projects.
      • Fixed or adjustable-rate mortgage options.

Conclusion: Selecting the right renovation mortgage option depends on your unique needs, preferences, and financial situation. Whether you choose FHA 203k, Fannie Mae HomeStyle® Renovation, VA Renovation loan, or Freddie Mac CHOICERenovation, these programs provide a pathway to transforming your property into the home of your dreams. Consult with a qualified mortgage professional to explore the best option for you and start your renovation journey today.



If you’re a first time buyer (or you haven’t owned a home in the past 3 years), and you’re going to be living in the property then the FHA’s 203k Program might be a great “low down payment” Fixer Financing Option For You.

Here’s how it works:

  • Down payments are low, usually 3.5%
  • You can get your down payment from an external source, (like family)
  • You can have “less than perfect” credit.
  • Great for Properties where major renovations make a property “Livable” again.
  • “Streamlined 203k’s” are available for less complicated fixer uppers.
  • Property must have 1-4 Units To Qualify.
  • Only available to Owner Occupants (no investors)
  • Prior to purchase you’ll coordinate with a contractor to come up with an Estimate of Repair costs.
  • Repair funds will be placed in Escrow at closing.
  • Funds are released according to a draw as phases of the project are completed.

FIXER FINANCING METHOD #2 – HomeStyle® Renovation Mortgage


Similar to the 203k Program, Fannie Mae’s HomeStyle® Renovation Mortgage allows you to finance the cost of repairs on your property.

But there are a few key differences.

  • You don’t have to “Owner Occupy” (You Can Be An Investor)
  • If you’re an Investor, your down payment will likely be in the 10-20% range.
  • And There’s No Limit On The Size Of The Project (Great if you want to do something “High End”)
  • Includes “Luxury Items”. Want a pool or BBQ pit? How about all new land or hardscaping, no problem. As long as it’s permanently fixed, it’s allowed!


Finally, if you want to avoid the hassle of dealing with banks, underwriters and complicated repair “draw” protocols, then “Hard Money” might be the right option for you.

Hard Money is basically a loan from a Private Investor who specializes in funding “Fix & Flip” or “Fix & Rent” Projects.

Typically a Hard Money transaction is WAY more convenient than the other 2 options on this page, But… a Hard Money Loan can be MUCH more expensive.

Many Hard Money Lenders will charge anywhere from 2-6 points (% of entire project cost) up front with High Monthly Interest rates for the duration of the loan term.

And with hard money, you’ll often have to “get the investor out” of the project by selling the property fast or refinancing with a conventional bank or mortgage company in 6-12 months.

That said, even with the expense Hard Money is a very popular option with many investors because it allows them to do more deals, quicker, and with less stress.

Ready To Get Started? Click Below To Request A Fast Quote To See What Financing Terms You Might Qualify For…