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Renovation Loans


Renovation loans allow borrowers to wrap the cost of repairs and improvements into their home financing. This loan option is ideal for borrowers who are interested in buying a property that needs repair or would benefit from remodeling. It is also ideal for homeowners who need funds to rehabilitate, remodel, or improve their current property. Below are the different types of Renovation Loans.


Streamline 203(k)

This is a loan restricted to repairs or improvements that total to $35,000 or less. It can be used for electrical and plumbing, furnace and AC, a finished basement, updated kitchens, baths, paint, carpet, floors, roofing, siding, and windows.

Full 203(k)

This loan allows more money to go towards renovation. It can be used for room additions, attached garages, or all streamline repairs.


  • Property must be owner-occupied
  • Loan amount must fall within FHA loan limits
  • Some restrictions on the types of repairs that can be done
  • Require a minimum of $5,000 to be spent on rehabilitation of the home
  • Some restrictions on the types of repairs that can be done


Fannie Mae HomeStyle® Renovation Loans allow more of the loan amount to go into repairs or improvements and more types of improvements are eligible.

The cost of renovations, repairs, or improvements can equal up to 50% of the “as-completed” value of the property. The “as-completed” value is the market value of the home, factoring in the improvements and renovations. The renovation loan can only be used toward repairs or renovations that are permanently affixed to the property and improves the value of the property.

  • Can be used on a primary home, second home, or investment property
  • Minimum of 5% down payment, calculated from the appraised value plus the cost of renovations
  • Loan amount must fall within FHA loan limits
  • Any renovation is allowed as long as it is attached to the real property

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