Renovation Loans: How to Buy and Improve a Home With One Loan

Posted by : Moneek-2

Have you found the perfect location—but the home needs some TLC? You don’t have to give up your vision or dip into your savings. A renovation loan allows you to purchase a home and finance repairs or upgrades with one convenient mortgage.

🛠️ What Is a Renovation Loan?

It’s a mortgage product that includes both the cost of the home and the funds needed for approved improvements. You get one loan, one monthly payment, and the ability to customize your home right from the start.

🔧 Common Renovation Loan Types

FHA 203(k): Great for primary residences with flexible credit requirements.
Fannie Mae HomeStyle: Can be used for a wide range of repairs and upgrades, including luxury improvements.
VA Renovation Loans: Available for eligible veterans purchasing or refinancing fixer-uppers.

💡 What Can Be Included?

Roof repair or replacement
Kitchen and bathroom remodels
Flooring, HVAC, plumbing, electrical updates
Accessibility improvements
Energy-efficient upgrades

🏡 Who Should Consider One?

Buyers looking at older homes with potential
Homeowners planning to refinance and renovate
Those priced out of turnkey homes but willing to do upgrades

Ask your lender about renovation loan options—you may be closer to your dream home than you think.

Renovation Loans: How to Buy and Improve a Home With One Loan