Renovation Loans
Renovation loans are a powerful tool for homebuyers looking to purchase a property that needs a little—or a lot—of work. These loans allow you to finance both the purchase price and the cost of renovations into a single mortgage, making it easier to turn a fixer-upper into your dream home. Whether you’re updating an outdated kitchen, repairing structural issues, or adding modern touches, renovation loans provide the flexibility and funding needed to buy with confidence and customize a home to fit your needs.
The FHA 203(k) Limited and Standard Rehab Loan
The FHA 203(k) loan is a powerful financing option for homebuyers and homeowners looking to renovate a property. There are two types:
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203(k) Limited – Ideal for minor renovations and non-structural repairs up to $75,000, such as new flooring, kitchen updates, or HVAC replacements.
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203(k) Standard – Designed for more extensive renovations, including structural changes, major remodeling, and even room additions, requiring a HUD consultant to oversee the project.
Both options allow borrowers to finance their home purchase and renovation costs into one loan, making it easier to create their dream home with affordable FHA terms.