FHA 203(k) Limited

The FHA 203(k) Limited loan allows buyers to purchase a home and finance minor renovations into one mortgage — even with a low down payment and flexible credit guidelines.

Common uses:

• Kitchens and bathrooms

• Flooring, paint, drywall

• Appliances

• Roofs, windows, HVAC (non-structural)

• General repairs and updates

Why buyers like it:

• Low down payment (typically as little as 3.5%)

• More flexible credit underwriting than many conventional loans

• Faster and simpler than major renovation options

• Ideal for homes that are livable but outdated

• Renovation cost below $75,000

Good fit for:
Buyers who want to update a home without needing perfect credit or large amounts of cash.

FHA 203(k) Standard

The FHA 203(k) Standard loan is designed for larger renovations, including structural work, while still offering low down payment options and flexible credit standards.

Common uses:

• Structural repairs

• Room additions or layout changes

• Foundation or load-bearing work

• Full home renovations

• Properties that are not livable at purchase

• Renovation cost above $75,000

Why buyers like it:

• Low down payment compared to most construction or renovation loans

• Flexible credit underwriting, making fixer-uppers accessible to more buyers

• Allows buyers to transform distressed or outdated homes into long-term residences

• Built-in oversight helps control costs and reduce surprises

Good fit for:
Buyers who want to take on a fixer-upper and need renovation financing that doesn’t require perfect credit or large cash reserves.

HomeStyle® and CHOICERenovation®

Are conventional renovation loans designed for buyers who qualify for conventional financing and want low down payment options (typically 3–5%) while renovating without relying on FHA-based loan programs.

Fannie Mae HomeStyle® Renovation

The Fannie Mae HomeStyle® Renovation loan is a conventional mortgage that allows buyers to purchase or refinance a home and finance renovations into one loan.

Why buyers choose HomeStyle:

• It’s a conventional loan, not FHA

• Down payments as low as 3–5% for qualified buyers

• Often appealing for buyers with stronger credit profiles

• Can be used for cosmetic updates or major renovations, including structural work

• Works for primary residences, second homes, and investment properties (eligibility varies)

• Renovation cost with no limits

Good fit for:
Buyers who want renovation flexibility but prefer a conventional loan structure and may want to avoid FHA mortgage insurance.

Freddie Mac CHOICERenovation®

The Freddie Mac CHOICERenovation® loan is also a conventional renovation mortgage, designed to help buyers finance home improvements as part of their purchase or refinance.

Why buyers choose CHOICERenovation:

• Conventional loan with 3–5% down payment options for eligible buyers

• Supports a wide range of renovations, including repairs, upgrades, and structural improvements

• Offers flexibility for renovations that improve safety, livability, or energy efficiency

• May be a good option for buyers who meet conventional credit and income guidelines

Good fit for:
Buyers who qualify for conventional financing and want a renovation option that supports both practical repairs and long-term improvements.

Not sure which option fits your situation?
👉 Schedule a Renovation Loan Strategy call before you write the offer.

VA Renovation Loans

Renovate Your Home Using Your VA Benefits

Veterans and active-duty service members can use a VA renovation loan to purchase or refinance a home and finance approved renovations into one VA-backed mortgage.

This option allows eligible borrowers to improve a home’s safety, livability, and functionality while taking advantage of the benefits offered through the U.S. Department of Veterans Affairs.

Eligible Renovations

VA renovation loans are typically used for necessary and functional improvements, including:

• Roof replacement

• HVAC, plumbing, and electrical repairs

• Flooring, drywall, and paint

• Kitchens and bathrooms

• Accessibility or safety-related upgrades

• Energy-efficiency improvements

Luxury items and non-permanent features are generally not permitted.

Key Benefits

• Uses VA loan benefits

• One loan, one closing- 100% financing available for qualified borrowers

• Renovations completed after purchase or refinance

• No FHA mortgage insurance

• Designed to improve safety, habitability, and longevity of the home

All loans are subject to VA guidelines, lender approval, and property eligibility.

USDA Renovation Loan-Buy or Improve a Home in Eligible Rural Areas — With One Loan

A USDA renovation loan allows eligible buyers and homeowners to purchase or refinance a home and finance approved renovations into a single USDA-backed mortgage.

Who USDA Renovation Loans Are For

USDA renovation loans may be a good fit if you:

• Are purchasing or refinancing in a USDA-eligible area

• Meet household income limits

• Want to renovate a home that needs repairs or updates

• Prefer a low out-of-pocket financing option 100% financing for qualified borrowers

• Plan to occupy the property as a primary residence

Eligibility is based on location, income, and property condition.

Eligible Renovations

USDA renovation loans are typically used for necessary and functional improvements, including:

• Roof replacement

• HVAC, plumbing, and electrical repairs

• Flooring, drywall, and paint

• Kitchens and bathrooms

• Water and septic-related repairs

• Accessibility and safety improvements

• Energy-efficiency upgrades

Luxury items and non-essential features are generally not permitted.

Key Benefits

• One loan, one closing

• Renovations completed after purchase or refinance

• Designed for rural and suburban homebuyers

• Supports affordability and long-term home safety

• Alternative to FHA or conventional renovation loans for eligible areas

All loans are subject to USDA guidelines, lender approval, and property eligibility.