Rehab Loan (Renovation Loan)
A rehab loan allows you to finance both the purchase of a home and the cost of renovations in a single mortgage. This is ideal for buyers who want to purchase a fixer-upper and customize it to their taste.
Programs Available
FHA 203(k) — Government-insured renovation loan with low down payment options. Available in Standard (for major renovations) and Limited (for cosmetic improvements up to $35,000).
Fannie Mae HomeStyle — Conventional renovation loan that covers virtually any type of renovation project.
What Can Be Renovated?
Kitchen and bathroom remodels · Room additions · Structural repairs · Roof replacement · HVAC, plumbing, and electrical · Landscaping and exterior improvements · Accessibility modifications.