Buy it and fix it, in one loan
Finance a home and the cost of improving it together, based on what the home will be worth once the work is done. Several programs, one application, $0 processing or underwriting fees.
What is a renovation loan?
A renovation loan lets you finance a home and the cost of improving it in a single loan, whether you are buying a fixer-upper or upgrading the home you already own. What makes it work is the value it is based on: not what the home is worth today, but what it will be worth after the work is done. That is how one loan can cover both the purchase and the renovation.
A renovation loan can be a good fit if you found a home in a great location that needs updating, keep getting outbid on move-in-ready homes, want to add a casita or modernize a dated home, or want to roll repairs into a refinance. We match you to the right program across 40+ lenders.
Which renovation loan is right for you?
“Several options” spelled out. We will help you pick the right one.
| Program | Best for | Good to know |
|---|---|---|
| FHA 203(k) Limited | Smaller cosmetic updates | Simpler process. Kitchens, baths, flooring, paint. |
| FHA 203(k) Standard | Larger or structural work | May involve a HUD consultant. Handles bigger projects. |
| Fannie Mae HomeStyle | A wide range of improvements | Conventional. Can include higher-end upgrades and ADUs. |
| Freddie Mac CHOICERenovation | Flexible conventional renovations | Can include resilience upgrades and ADUs. |
| VA Renovation | Eligible veterans buying and repairing | Combines VA benefits with renovation financing. |
Can you do the work yourself?
Sometimes, on the right program. But here is the honest part: no program pays you for your own labor, only for materials.
Fannie Mae HomeStyle is the most do-it-yourself friendly. On a one-unit home, you can do the work yourself as long as it stays within 10% of the home’s after-renovation value, the lender approves your plan in advance, and larger items get inspected. Materials can be reimbursed; your own labor cannot.
Freddie Mac CHOICERenovation also lets you do your own work if you are licensed where your state requires it, insured, qualified, and you submit a written plan. Again, materials are covered, labor is not.
FHA 203(k) technically allows it too, but most lenders require a licensed contractor, so it is usually the hardest to do yourself in practice.
If you are handy and the project is modest, we will help you find the program and lender that actually allows it. Guidelines change, so we will confirm the current rules for your scenario.
How much can I borrow?
Most mortgages are based on what a home is worth today. A renovation loan is different. It is based on the after-renovation value, what an appraiser estimates the home will be worth once the planned work is complete. That higher finished value is what lets one loan cover both the home and the improvements.
A simple way to think about it: purchase price (or current value) plus your renovation budget, checked against the projected finished value. If the finished home will appraise for enough, the project works. Try it below.
Estimate your project
Enter your numbers to see the total project and where your equity lands once the work is done.
Estimates only, not a quote or approval. Final numbers depend on the program, the appraisal, and lender guidelines.
How a renovation loan works, step by step
- 1Plan your project. We review your scope and rough budget and match you to the right program.
- 2Get pre-approved using the after-renovation value, so you know your numbers before you shop or hire.
- 3Contractor bids and plans. You choose a licensed, insured contractor and gather bids and a renovation plan.
- 4After-renovation appraisal. An appraiser values the home as if the work is already done.
- 5Close. The loan funds and the renovation money is set aside.
- 6Work happens, paid in draws. Your contractor is paid in stages as work is completed and inspected, with a final sign-off at the end.
Renovation loan FAQs
Can I do the renovation work myself, without a contractor?
Sometimes, on the right program. Fannie Mae HomeStyle is the most do-it-yourself friendly: on a one-unit home you can do work worth up to 10% of the after-renovation value, with lender approval. Freddie CHOICERenovation allows it if you are licensed where required, insured, and qualified. FHA 203(k) technically allows it but most lenders require a contractor. In every case you can be reimbursed for materials, but not for your own labor. We will help you find a program and lender that fits.
How does a renovation loan work?
It rolls the home and the cost of improving it into one loan, based on what the home will be worth after the work is done. The renovation money is set aside, and your contractor is paid in stages as the work gets completed.
How is the loan amount calculated?
Off the after-renovation value, an appraiser’s estimate of what the home will be worth once the planned work is finished, not just today’s value.
Are the funds paid to me or to the contractor?
To the contractor, released in stages (called draws) as the work is completed and inspected.
Can I use a renovation loan on the home I already own?
Yes. You can refinance your current home and roll the renovation costs into the new loan.
Can I buy a fixer-upper with a single loan?
Yes. That is exactly what a renovation loan is for. One loan covers the purchase and the improvements.