Skip links

Home Renovation Loans

aka Rehab Loan, FHA 203(k) and HomeStyle Loan

Whether you’re looking to renovate your kitchen, install a home office or finish your basement, any major home improvement is going to require some major money. You don’t have to wait until you have all the cash in hand, though. A home renovation loan could be your path to getting the project underway sooner than you think.

What is a Home Renovation Loan?

A home renovation loan is a loan that includes funds for renovating, remodeling and repairing a home. It’s often a mortgage with extra money for home improvements.

Also known as: Rehab Loans, FHA 203(k) and HomeStyle Loans.

Renovation loans allow for you to finance in repair costs to fix up your home. Typically the lender will get quotes and estimates from a contractor and then determine how much the repairs and renovations will increase the value of the home.

Is a Renovation Loan right for you?

If you are considering renovating your home or property, it is important to speak with one of our loan specialists to see if you are eligible and to compare the benefits and drawbacks of this type of loan against other types of loans.

We offer a no-hassle & easy quote without the formal application or credit check required. Just answer a few questions about your mortgage goals! We will review the information you provide with some recommendations and options from our team of experts!

Home Renovation Loan Options

These loans can be great for the first time home buyer or someone looking to upgrade into a bigger home. Both Government loans and conventional loans allow for renovations to be financed.

Conventional Renovation Loan

Conventional renovation loans are privately funded and not insured through the government. These loans have more stringent approval requirements than government-backed loans, such as higher down payments and the owner occupying the property.

Fannie Mae HomeStyle Renovation Loan

The Fannie Mae HomeStyle Renovation loan allows borrowers to either buy a place that needs repairs or refinance their existing home loan and get money for improvements. One advantage of a HomeStyle loan is that it’s just one loan with one monthly payment; you don’t have to take out a loan for the mortgage and another loan for home repairs. Getting one loan cuts down on time and closing costs.

FHA 203(k) Renovation Loan

Like the Fannie Mae HomeStyle Renovation loan, the FHA 203(k) loan is a government loan that can simultaneously fund the purchase of a home and renovations under one mortgage loan. Options include a Limited 203(k) loan capped at $35,000 and a standard 203(k) for major rehab or construction.

VA Renovation Loan

VA renovation loans are VA loans, and come with all of the same benefits and requirements that a standard VA loan does, but allows borrowers to purchase a home with 0% down, no mortgage insurance and relatively low interest rates compared to other mortgage types.

Simple Mortgage Calculator

CFG Simple Mortgage Calculator Widget


Would you like to talk with a Mortgage Loan Expert about these numbers?

Contact Information


Our Locations







New Mexico



News and Blog

Latest Posts