A Renovation loan can be a convenient and economical way to make renovations or repairs without having to pull equity from a home or applying for a second mortgage. Now Borrowers can purchase, or refinance a home and renovate it, all in one loan – one application, one closing, and one monthly payment.
| FHA 203K
(Standard) | FHA 203K
(Limited) | Fannie Mae
HomeStyle®(Full) | Fannie Mae HomeStyle®
(Streamline) | | Loan Purpose | Purchase and Refinance | | 1-4 Unit Primary Residence |  | | | | | 1-Unit Second Home | | | | | | 1-Unit Investment Properties | | | | | | Minimum Down Payment | 3.5% of purchase price
plus total renovation amount. | 3% – 1 Unit Property Residence
15% – 2 Unit Primary Residence
25% – 3 or 4 Unit Primary Residence | | 10% – 1 Unit Second Home | | 20% – 1 Unit Investor | | Appraisal | Value based on completed repairs. Appraisal to be marked “Subject To”.
Repairs can include any Appraiser identified items. Utilities may or may not need to be turned on. | | Maximum Renovation Amounts | No maximum as long as mortgage amounts are within county guidelines for FHA loans. | Up to $35,000
(including fees and contingency reserve). | 75% of the as
completed value. | 75% of the as completed value, up to $50,000 (including fees and contingency reserve). | | Allowable Repairs | From complete rehab including structural charges, new appliances,
and more. | Flooring to painting, remodeling kitchen/bath, appliances, and more.
No major remodeling or structural repairs. | Repairs must be affixed and add value to the property. | Repairs must be affixed and
add value to the property. No structural repairs. |
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*This information is not intended to be an indication of loan qualification, loan approval or commitment to lend. Loans are subject to credit and property approval. Other limitations may apply. Rates, terms, and availability of programs is subject to change without notice. |
