Renovation and Remodel Home Loans

What does your dream home look like? Do you want to update your current home with high-end finishes or durable countertops? Does creating a gourment kitchen or spa-like bathroom sound ideal?

Whether you’re buying a fixer-upper or updating your existing home, renovation loans can help you finance your dreams and may offer a better interest rate than using a credit card.


Renovation loan options help you borrow the right amount.

One popular renovation loan option is a FHA 203(k) loan. This is an FHA-backed loan that can be used to refinance an existing home with added money for repairs, updates, or renovations. There are two types to choose from, depending on your needs.

Limited 203(k) renovation loan

The Limited 203(k) program is intended to facilitate uncomplicated rehabilitation and/or improvements to a home for which plans, consultants, engineers, and/or architects are not required. The maximum repair amount is $35,000, with no minimum requirement for repairs.


Standard 203(k) renovation loan

The Standard 203(k) program is intended to assist with more complex, major rehabilitation and/or improvements to a home for which plans, consultants, engineers, and/or architects are often required. There is no maximum repair amount, though there is a $5,000 minimum requirement for repairs.


  • No equity is necessary.
  • The loan allows you to stay with one mortgage and one payment.
  • There’s no minimum renovation for Limited 203(k).
  • Structural repairs are OK with Standard 203(k).


  • No do-it-yourself work is allowed, and contractors must be vetted.
  • The loan can be applied to a primary residence only.
  • A down payment is required.
  • There’s a lot of paperwork.


Frequently asked questions:

What is a home renovation loan?

A home renovation loan is typically a mortgage that provides funds for fixing up a home, and it falls under the home improvement loan category.

Here are some home improvement loan options:

  • A purchase mortgage, with additional funds for renovations
  • Refinancing your current mortgage with a cash payout for home improvements
  • A government loan, such as a Fannie Mae HomeStyle loan or FHA 203(k) loan
  • A home equity line of credit (HELOC)
  • An unsecured personal loan
When should you consider a home renovation loan?

When you want to fix up your home and don’t have enough cash to pay for the updates outright, a home renovation loan may be the best option. Another scenario to consider a home renovation loan is if a house that you want to buy is a fixer-upper for the right price.

Without equity, can I get a home improvement loan?

If you don’t have a lot of (or any) equity in your home but need to make home repairs, there are no-equity home improvement loan options that can allow you to finance the renovation costs and avoid using credit cards or emergency savings. 

Interested in this loan?