A renovation loan rolls the purchase price (or your current balance) and the cost of the work into a single mortgage, based on what the home will be worth once the work is done — so you don't need a separate construction loan or cash on hand for the project. The two main programs are the government-backed FHA 203(k) and the conventional Fannie Mae HomeStyle. This pillar explains how each one works, factually, without a promise of approval or a rate.
If you're weighing a fixer-upper, or a home that won't pass financing as-is, start here: what the programs cover, how 203(k) and HomeStyle differ, what the costs really are, and how the amount you can borrow is calculated. When you want it applied to a specific property, a soft-credit pre-qualification is the next step.
In this guide
Every topic in Renovation Loans, each answered on its own page.
FHA 203(k) renovation loans
The government-backed loan that finances a home plus the cost of repairs in one mortgage, and what it covers.
Read moreFannie Mae HomeStyle renovation loans
The conventional renovation loan, the wider range of projects it allows, and how it differs from a 203(k).
Read moreFHA 203(k) vs. HomeStyle
A side-by-side on eligibility, allowed work, mortgage insurance, and which tends to fit which project.
Read moreRenovation loan costs
The fees unique to a renovation loan — contingency reserves, draws, inspections — and how they add up.
Read moreHow much can you borrow for a renovation?
How the after-improved value sets your limit, and the math behind a renovation loan amount.
Read moreReady to see your real numbers?
Get pre-qualified in about 10 minutes — a soft credit check to start, no impact to your score, and no obligation.
Michael Hernandez, Branch Manager · Pacific Bay Lending Corp NMLS #192103 · Equal Housing Lender. Homes shown are public listings for illustration of what's available in this range — not an offer to make a loan on, or sell, a specific property. This is not a commitment to lend; all loans subject to credit approval, program guidelines, and underwriting.