Fixer-Upper Friendly
Renovation Loans
Finance your home purchase and improvements in one loan. Perfect for fixer-uppers and dream home transformations.
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Renovation Loan Options
Fannie Mae HomeStyle® Renovation
Conventional purchase-plus-rehab for primary, second home, or investment — pools allowed, 15-month completion, DU only
Freddie Mac CHOICERenovation®
Conventional rehab for primary, second home, or investment — pools allowed, LPA Accept underwriting, and up to 97% LTV with eligible Home Possible.
Luminate Bank Interim Renovation Loan
Short-term interest-only construction financing for major renovations and fix-and-flip before permanent financing or sale.
Low Down Payment Renovation Loans
HomeReady® HomeStyle® Renovation
Primary-residence rehab with as little as 3% down — HomeReady income-eligible buyers who want HomeStyle renovation in one conventional loan.
Home Possible Freddie Mac CHOICERenovation®
Primary-residence rehab with as little as 3% down — Home Possible income-eligible buyers who want Freddie Mac CHOICERenovation® in one conventional loan.
Compare Renovation Loans
Side-by-side comparison of all six renovation programs — see minimum loan amount ($100,000), renovation cost limits, consultant requirements, max draws, minimum credit scores, down payment, occupancy, and what each loan is built for before you estimate your payment.
| Feature | Fannie Mae HomeStyle® | Freddie Mac CHOICERenovation® | Luminate Interim Renovation | FHA 203(k) | HomeReady® HomeStyle® | Home Possible CHOICERenovation® |
|---|---|---|---|---|---|---|
| Min. Loan AmountMinimum Loan AmountThe smallest total loan size this lender/program will fund. Every program shown here starts at $100,000. | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 |
| Min. Renovation CostsMinimum Renovation CostsThe smallest rehab budget the program will finance. Some programs have no floor; others require a minimum repair package. | None | None | $50,000 | Standard: $5,000 · Limited: none | None | None |
| Max. Renovation CostsMaximum Renovation CostsThe upper limit on financed repairs — often a percent of after-repair value (ARV), a dollar cap, or none depending on the program. | 75% of ARVAfter-Repair Value (ARV)The appraised value of the home after renovations are complete. Lenders use ARV to set how much renovation cost can be financed. (MHManufactured Home (MH)A factory-built home on a permanent foundation. Manufactured homes often have a lower renovation cost cap than site-built homes.: 50%) | 75% of ARVAfter-Repair Value (ARV)The appraised value of the home after renovations are complete. Lenders use ARV to set how much renovation cost can be financed. (MHManufactured Home (MH)A factory-built home on a permanent foundation. For manufactured homes, the renovation cap is the lesser of $50,000 or 50% of ARV.: $50k or 50%) | None | Standard: none · Limited: $75,000 | 75% of ARVAfter-Repair Value (ARV)The appraised value of the home after renovations are complete. Lenders use ARV to set how much renovation cost can be financed. (MHManufactured Home (MH)A factory-built home on a permanent foundation. Manufactured homes often have a lower renovation cost cap than site-built homes.: 50%) | 75% of ARVAfter-Repair Value (ARV)The appraised value of the home after renovations are complete. Lenders use ARV to set how much renovation cost can be financed. (MHManufactured Home (MH)A factory-built home on a permanent foundation. For manufactured homes, the renovation cap is the lesser of $50,000 or 50% of ARV.: $50k or 50%) |
| Consultant RequirementsConsultant RequirementsWhether a renovation or HUD 203(k) consultant must prepare the work write-up and help manage draws. Conventional programs often require one only in certain states; FHA Standard always requires a HUD-approved consultant. | AK/CA/HI/NY only | AK/CA/HI/NY only | Not required | Standard: required · Limited: none | AK/CA/HI/NY only | AK/CA/HI/NY only |
| Max. DrawsMaximum DrawsHow renovation funds are released from escrow. A draw pays the contractor after an inspection confirms completed work. Most permanent programs allow five draws plus a final inspection; Interim allows up to two draws per month. | 5 + final | 5 + final | 2 per month | Standard: 5 · Limited: 2 | 5 + final | 5 + final |
| Min. Credit ScoreMinimum Credit ScoreThe typical lowest middle FICO many lenders accept for that program. Overlays, LTV, and pricing can raise the practical floor. Conventional renovation usually starts near 620; FHA often near 580 for 3.5% down; Interim steps up for larger loan amounts. | 620 | 620 | 700 · 720 above conforming | 580 (3.5% down) | 620 | 620 |
| Min. Down PaymentMinimum Down PaymentThe smallest cash down payment typically allowed for a purchase on that program (refinance may differ). Actual down payment depends on occupancy, credit, and underwriting. | 5% | 5% | Varies by deal | 3.5% | As low as 3% | As low as 3% |
| Loan TypeLoan TypeThe mortgage category backing the rehab — conventional (Fannie/Freddie), FHA, or short-term interim construction financing that later converts or pays off. | Conventional | Conventional | Interim construction | FHA | Conventional | Conventional |
| OccupancyOccupancyWho can live in (or own) the property under the program — primary residence, second home, investment, or fix-and-flip uses. | Primary, second home, investment | Primary, second home, investment | Primary, investment, fix-and-flip | Primary residence | Primary residence | Primary residence |
| Income LimitsIncome LimitsWhether household income must stay under a program cap (common on HomeReady® and Home Possible®). “None” means no income ceiling for that product. | None | None | None | None | Yes (HomeReady®) | Yes (Home Possible®) |
| Mortgage InsuranceMortgage InsuranceExtra coverage lenders require when you put less than 20% down (PMI on conventional) or on FHA loans (MIP). Short-term interim loans typically do not use PMI/MIP. | PMI if under 20% down | PMI if under 20% down | Typically none (short-term) | FHA MIP required | PMI if under 20% down | PMI if under 20% down |
| Standout FeaturesStandout FeaturesProgram highlights that set this option apart — pools, underwriting path, interest-only draws, Limited vs Standard, or income-eligible pricing. | Pools allowed; ~15-month completion; DU only | Pools allowed; LPA Accept | Interest-only draws for major rehab before permanent financing or sale | Full Standard or Limited Streamline (up to $75k cosmetic) | HomeStyle rehab + HomeReady income-eligible pricing | CHOICERenovation rehab + Home Possible income-eligible pricing |
| Best ForBest ForThe borrower profile or project type this program usually fits best — a quick guide, not a guarantee of approval. | Flexible rehab on any occupancy type | Conventional rehab with Freddie Mac underwriting | Large projects and fix-and-flip | Lower down payment & more flexible credit | Income-eligible buyers wanting 3% down + rehab | Income-eligible buyers wanting 3% down + rehab |
Guidelines vary by credit, property, and underwriting. Hover or tap each feature name for a short definition — and ARV / MH in Max. Renovation Costs for those abbreviations.
Renovation Loan Calculator
Estimate your total loan amount and monthly payment for a home purchase plus renovation project.
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$8,750 down
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Estimated Monthly Payment
$2,274
Principal & Interest$1,841
FHA MIP (Annual)$133
Property Tax$200
Home Insurance$100
Total Project Cost$300,000
Down Payment$8,750
Loan Amount$291,250
LTV (vs. ARV)83.2%
This calculator is for informational purposes only. Results are estimates and are not exact — they do not include all closing costs, prepaid interest, or escrow deposits. Contact us for a personalized quote.
Mortgage Knowledge Center
Common Renovation Loan Questions
Straight answers on how renovation financing works, which properties qualify, what repairs you can roll into the mortgage, when you can start renovating, which improvements are allowed, luxury upgrades, contractor approval, DIY limits, FHA 203(k), HomeStyle, additions, roof replacement, HVAC, kitchens, and bathrooms.
What Is a Renovation Loan?What Homes Qualify for a Renovation Loan?Can I Finance Repairs With a Renovation Loan?Can I Renovate Immediately?What Improvements Are Allowed?Can Luxury Improvements Be Included?How Are Contractors Approved?Can I Do the Work Myself?What Is an FHA 203(k)?What Is a HomeStyle Renovation Loan?Can I Finance Additions?Can I Finance a Roof Replacement?Can I Finance HVAC Replacement?Can I Finance Kitchens?Can I Finance Bathrooms?Can I Buy and Renovate With One Loan?How Are Renovation Funds Distributed?What Inspections Are Required?How Long Do Renovations Take?Is a Renovation Loan Right for Me?
2MG Daily
Latest Renovation Insights
Recent articles from our blog covering renovation loans, FHA 203k, and fixer-upper financing tips.
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