48 Meriden Rd, Suite 1, Middlefield, CT 06455

Rehab and Renovation loans in Connecticut

There are many different options available to borrowers who are interested in repairing their future home to make them move in ready or to make updates/fixes to their current homes they currently live in. These programs all fall under their individual mortgage categories such as FHA, Conventional, USDA and VA.

Most commonly, FHA, has three (3) sub options available for renovation/repair loans. These options are openly offered to anyone looking to update and bring a home that may not be up to FHA guidelines currently. These are the most popular of the renovation loans due to the competitive rates and low down payment options (including gifts) with a 580 mid score and other inclusive prequalification factors. In more detail:

FHA 203(k) Limited:

  • Minor Remodeling
  • No Minimum repair amount (max repair amount $35,000.00)
  • HUD consultant is not Required
  • Owner Occupied
  • 3 Month Completion Time

FHA 203(k) Standard:

  • Structural Changes allowed
  • $5,000.00 Minimum/No Maximum
  • HUD Consultant Required at $35,000.01)
  • Landscaping and Hardscaping Allowed
  • Owner Occupied
  • 6 Month Completion Time

FHA 203(b) Repair Escrow: (HUD/REO OWNED PURCHASES)

  • Uncomplicated Minor Rehabs
  • $11,000.00 Repair Max
  • Cosmetic Purposes
  • 5% LTV + max $10,000 in Repairs (cannot exceed county limits)

Fannie Mae offers a conventional option for improvements called the FNMA HomeStyle. This product is available to anyone looking to make renovations with a single closing. A 620 mid score and other qualifying factors are required for this option but, is sometimes a better choice for borrowers with a higher credit score to choose due to no Mortgage Insurance Premium (MIP) like that of the FHA option.


  • 97% Max LTV
  • Finance improvements up to 75% of the “as-completed” appraised value
  • No Required Improvements (must be affixed to the Real Property)
  • No Minimum Amount
  • HUD Consultant Required if greater than $35,000.00
  • 10% Draw disbursed at closing (on “standard” HomeStyle options)
  • Owner Occupied, 2nd Home, Investment Properties

The last two options, VA and USDA, are very specific to a borrower’s and properties qualifications. Both require a minimum middle score of 620. They both also offer 100% financing options with other qualifying factors.


  • No Minimum repair amounts
  • Minor alterations, cosmetic repairs, and nonstructural repairs
    •  including accessibility upgrades
  • 1 – 2 Unit Properties
  • HUD Consultant Required at $50,000.00 in Repairs
  • Home must be habitable at time of application
  • 4 Month Timeframe
  • 100% LTV, with renovation cost


  • Minor Repairs
  • Cannot exceed 10% of the final loan amount
  • Rural Areas (must be USDA approved)
  • 180 Day Timeframe


These programs are not for the light of heart, a lot goes into the upfront planning and work from all -parties involved. They can be a more time-consuming process but, you will be happy with the overall outcome and I can assist in any questions you may have along the way.

Please feel free to call or text me today at 860-877-0580. You can also email me ashley@northeast-mortgage.com and I would be more than happy to answer any questions you may have as this was just the surface of the renovations/rehab world of mortgages.

**An important factor to remember regarding all the above options is, borrowers are not allowed to be the general contractor or repair persons of their own mortgage and these renovations/rehabs need to be completed by a third party to the transaction. (*VA contractors must be approved with the VA prior to loan submission)

Ashley Socquet
Loan Originator
NMLS#:1848164 and Company NMLS#:117273