HomeStyle, CHOICERenovation, FHA 203k
Renovation Loans
Finance your home purchase or refinance and the cost of renovations in a single loan.
Renovation loans let you roll the cost of home improvements into your purchase or refinance, based on the home’s value after the work is complete - rather than needing separate financing for repairs or upgrades.
We offer several renovation programs, including Fannie Mae HomeStyle Renovation, Freddie Mac CHOICERenovation, and the FHA 203(k) loan. Each has its own guidelines around eligible property types, credit requirements, and the scope of renovations allowed.
Whether you’re buying a fixer-upper or want to renovate the home you already have, we’ll help match you with the renovation program that fits.
Why a renovation loan can help
- Buy the house others pass on. Homes that need work often face less competition.
- One loan, one payment. No separate personal loan or credit card for the remodel.
- Borrow on the finished value. The loan amount is based on what the home will be worth after the work, not what it’s worth today.
- Renovate without moving. Refinance the home you already have and roll in the cost of updates.
Comparing the programs
| FHA 203(k) | Fannie Mae HomeStyle | Freddie Mac CHOICERenovation | |
|---|---|---|---|
| Loan type | FHA | Conventional | Conventional |
| Down payment | Lower, FHA guidelines | Conventional guidelines | Conventional guidelines |
| Credit | More flexible | Stronger profile | Stronger profile |
| Properties | Primary homes | Primary, second homes, investment | Primary, second homes, investment |
| Good for | Buyers with a smaller down payment | Bigger projects and more property types | Bigger projects, including resilience upgrades |
FHA also offers a Limited 203(k) for smaller, non-structural work, and a Standard 203(k) for major renovations.
How the process works
- Get prequalified and find the home.
- Get bids from a qualified contractor for the work.
- The appraiser values the home as it will be once the work is done.
- You close. Renovation funds are held in an account.
- Your contractor is paid in stages as work is completed and inspected.
Common questions
What can I renovate?
Most permanent improvements: kitchens, baths, roofs, additions, systems and more. Each program has its own rules on what’s allowed.
Can I do the work myself?
Usually not. Most programs require licensed contractors, with limited exceptions.
Is it slower than a regular loan?
A bit, because of contractor bids and the renovation review. Starting early helps.
Found a home with potential? Call us at 303-931-3239, or get prequalified online.