Yes — renovation mortgages let Indiana buyers combine the purchase price and rehab costs in a single loan. FHA 203(k), HomeStyle, and VA purchase-plus-rehab programs base the loan on after-improved value, hold rehab funds in escrow, and release dollars through draws after inspection. Ryan and Steve help fixer-upper buyers skip the second loan.
Traditional financing often forces a split: a purchase loan for the house and cash or a separate credit line for repairs. Renovation mortgages roll both into one note so you close once and renovate with escrowed funds instead of draining savings after moving in.
The loan amount reflects purchase price plus approved renovation costs, subject to after-improved appraised value and program limits. Rehab dollars do not land in your checking account at closing — they sit in escrow and pay licensed contractors as milestones pass inspection.
FHA 203(k), Fannie Mae HomeStyle, and VA renovation each handle purchase-plus-rehab slightly differently. Ryan and Steve match your fixer-upper, scope, and down payment to the program that clears underwriting at Luminate Bank.
Clear bids and a realistic scope keep one-loan purchase-and-renovate files moving through appraisal and escrow.
Purchase price plus documented renovation costs — roof, kitchen, baths, HVAC, structural repairs, and other eligible items in the approved scope of work.
Standard 203(k) handles major rehabs; Limited 203(k) caps smaller scopes. Both combine buy and fix in one FHA-insured mortgage with escrow draws after closing.
HomeStyle works on conventional purchases with flexible improvements. VA renovation lets eligible veterans roll rehab into a VA purchase when the property and scope qualify.
Contractor bids with line items, a written rehab plan, contingency reserve, and an appraisal that assumes completed work — not a vague “we will fix it later” estimate.
Purchase-plus-rehab follows the same rhythm — plan, underwrite, close, draw — whether you choose FHA, HomeStyle, or VA.
Step 1
Identify the property, define repairs, and gather licensed contractor bids with clear line items before you write the offer.
Step 2
Ryan and Steve underwrite income, credit, and the combined purchase-plus-rehab amount against program LTV and property rules.
Step 3
You sign one note covering the home and escrowed rehab funds. Repair dollars stay in escrow — not in your pocket at the table.
Step 4
Contractors complete work in stages; inspections clear milestones; escrow releases payment until the project passes final inspection.
Related guides to scope your project and move toward pre-approval.
How one mortgage covers the home and improvements with escrow draws.
Escrow holdbacks, draw inspections, and when rehab dollars release.
Property types, occupancy, and condition rules by program.
Standard vs. Limited 203(k) and when FHA purchase-plus-rehab fits.
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Yes. FHA 203(k), HomeStyle, and VA renovation mortgages combine the purchase price and approved rehab costs into a single loan based on after-improved value. You close once, then rehab funds release from escrow as work is completed and inspected — not as a lump sum at closing.
Lenders look at the purchase price plus documented renovation costs, capped by the after-improved appraised value and program LTV limits. Contractor bids, a written scope of work, and an appraisal that assumes completed improvements all feed the final loan amount Ryan and Steve underwrite.
No — that is the point of a renovation mortgage. Instead of a purchase loan plus cash, a HELOC, or a second loan for repairs, one note covers both. Rehab dollars sit in escrow after closing and pay contractors through the draw process.
No. Eligibility depends on credit, income, property condition, program rules, bids, appraisal, and lender overlays. This page is educational only and is not a commitment to lend. Ryan and Steve review your purchase price, scope, and bids against current guidelines before pre-approval.
Share the property address, purchase price, and contractor bids with Ryan & Steve. We will confirm whether FHA 203(k), HomeStyle, or VA purchase-plus-rehab fits and get you pre-approved before you write the offer.