RENOVATION LOANS:
FINANCE WHAT THE PROPERTY CAN BECOME.

Best suited for

Eligible owner-occupied FHA transactions involving a property that needs repairs or improvements.

FHA 203(k) combines eligible property acquisition or refinance financing with eligible rehabilitation costs under one mortgage structure. Two variants exist: the Limited 203(k) for smaller-scope projects and the Standard 203(k) for more extensive renovation work. Program requirements, eligible improvements and borrower qualifications are governed by FHA guidelines and lender overlays.

Best suited for

Eligible conventional renovation transactions for primary residences, second homes and investment properties.

HomeStyle Renovation can finance eligible improvements as part of a conventional mortgage structure, subject to Fannie Mae and lender requirements. It can be used for purchase or refinance transactions and may accommodate a broader range of property types and improvement scopes than government programs.

Best suited for

Eligible conventional transactions where renovation costs are being incorporated into the financing.

CHOICERenovation is Freddie Mac's conventional renovation mortgage option. It allows eligible improvements to be financed alongside the property acquisition or refinance, subject to Freddie Mac guidelines and lender requirements. It may be an alternative to HomeStyle depending on the lender, property and transaction.

Best suited for

Eligible VA borrowers when renovation financing is available through a participating lender.

VA renovation financing may allow eligible veterans and service members to incorporate qualifying improvement costs into a VA-backed mortgage. Lender availability and overlays vary significantly — not every VA lender offers renovation financing. If you are a VA-eligible borrower with a property that needs work, ask specifically about renovation options.

Best suited for

Projects involving new construction or qualifying construction-to-permanent financing.

One-time close construction financing integrates the construction phase and permanent mortgage into a single loan structure where available. This can apply to site-built construction, major reconstruction and manufactured or modular construction where eligible. Requirements, eligible projects and available programs vary by lender and loan type.

Best suited for

Investors purchasing, renovating and repositioning properties.

Private and bridge lenders commonly evaluate purchase price, project cost, renovation budget, ARV, LTC, ARLTV, borrower experience, liquidity, property condition, timeline and exit strategy. These are asset-based lending decisions. Calculations, requirements and terms vary significantly by lender — there is no universal standard.

Best suited for

Investment properties intended to be held as rentals after renovation.

DSCR financing generally evaluates property cash flow relative to lender-specific leverage and coverage requirements rather than borrower income. For value-add rental projects, DSCR may become part of the exit strategy after renovation is complete rather than the initial rehab financing vehicle. The path often involves bridge or rehab financing first, then a DSCR refinance.

Best suited for

Eligible manufactured or modular home transactions involving renovation, installation, construction or replacement.

Financing for manufactured and modular properties depends heavily on property classification, land ownership, foundation type, title treatment, construction scope, loan program and lender eligibility. These transactions require careful analysis before assuming any standard renovation program applies.