Renovation Loans
Don't skip the "ugly" house. Renovation loans allow you to finance both the purchase price and the repair costs in one single mortgage.
The Expert Advice
The most popular option is the FHA 203k. It only requires 3.5% down of the total project cost (Purchase + Repairs). This is the ultimate "house hacking" tool for first-time buyers.
The Real Problem
Contractor delays. A renovation loan requires a licensed contractor and a detailed "Scope of Work." If your contractor isn't experienced with these loans, the paperwork can be a nightmare. We help vet your contractors first.
FHA 203(k) Limited
Up to $35,000 in repairs.
Best for non-structural repairs like kitchens, bathrooms, flooring, and paint. No "consultant" required.
FHA 203(k) Standard
Repairs over $35,000.
Best for major structural work, additions, or full gut-renovations. Requires a HUD Consultant to oversee the project.
Renovation Decision Framework
Buying a Foreclosure?
Most foreclosures won't pass a standard FHA inspection. A 203k is the ONLY way to buy these with low down payment.
HomeStyle (Conventional)
If you have higher credit (720+), use the Fannie Mae HomeStyle program. It has lower insurance costs than FHA.