Don't love the kitchen or need to update the bathrooms? A renovation loan lets you finance the purchase price plus the cost of improvements in a single mortgage — one closing, one payment, one loan. Available for buyers and homeowners refinancing.
Here's the problem renovation loans solve: you find a great home in a great Charlotte neighborhood but it needs work. Without a renovation loan, you'd need to buy the home at full price, then separately find financing for the renovations — often at credit card or personal loan rates.
A renovation loan lets you offer on the home based on its after-renovation value, roll the cost of the work into your mortgage, and pay for everything at mortgage rates. The renovation funds are held in escrow and disbursed as work is completed and inspected.
The FHA-backed renovation loan. More flexible credit requirements make it accessible for buyers who don't yet qualify for conventional financing. Two versions: Limited (up to $35,000, non-structural only) and Standard (larger projects, structural work allowed).
The conventional renovation loan — more versatile than FHA 203k. Covers luxury upgrades, investment properties, and second homes. No MIP with 20%+ equity. Allows a wider range of improvements with fewer restrictions on contractor type.
*Eligible improvements vary by program. FHA 203k has more restrictions than HomeStyle. All work must be completed by licensed contractors.
Get pre-approved and define your renovation scope. We help you build a realistic budget before you make an offer.
Get licensed contractor bids for the work. These bids go to underwriting. We'll guide you on what's needed to satisfy the program requirements.
You close on the home. Renovation funds are held in escrow — not released until work is completed and inspected. You own the home and work begins.
Work is inspected at milestones and funds released to the contractor. Once complete, you have the home and the renovation — one loan, one payment.
Timeline note: Renovation loans take 45–60 days to close due to the additional contractor review process. If you're buying in a competitive market, discuss timing with your agent — sellers need to understand the slightly longer process. We'll help you frame this clearly in your offer.
★★★★★"There wasn't any obstacle that he could not find a solution to. Trevor did a wonderful job of explaining everything and made our dream of homeownership come true!"
★★★★★"Trevor pursued multiple options to ensure we got the best available loan for our circumstances. He took the time to explain things and make sure both of us felt comfortable."
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A renovation loan combines the home purchase price and renovation costs into one mortgage. You qualify based on the home's after-renovation value, renovation funds are held in escrow, and released as work is completed and inspected. One closing, one loan, one payment.
FHA 203k needs only a 580 credit score and 3.5% down but requires permanent MIP and is limited to primary residences. HomeStyle needs 620+ credit and 3% down, but PMI cancels at 20% equity and it's available for investment properties and second homes. For buyers with good credit, HomeStyle is almost always the better long-term choice.
Yes — the Fannie Mae HomeStyle loan can be used for investment properties with 15–25% down. This is an excellent tool for the acquisition-and-renovation phase of a BRRRR strategy. FHA 203k is primary residence only.
Typically 45–60 days — longer than a standard purchase due to contractor bid review. Planning ahead is essential. We walk you through the document requirements and contractor bid format during your pre-approval consultation to minimize delays.
Free consultation. We'll walk through your renovation plans, compare 203k vs HomeStyle, and give you a full pre-approval with realistic numbers.
No credit pull. No commitment. Or call/text Trevor directly: 330-977-0017
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