Renovation Loan Resources

Renovation Checklist

While you’re picturing new appliances, sparkling granite countertops, and fresh paint colors, the appraiser who evaluates your new home is inspecting specific items to ensure they meet HUD’s minimum property standards. Follow this checklist ahead of time to determine if these items need to be included in your repair list.
 

  • Exposed wiring
  • Chipped/peeling paint
  • Mold or mildew
  • Termite treatment
  • Windows open/close freely
  • Missing window screens
  • Inadequate caulking or weather-stripping
  • Missing electrical switches, outlets, or plates
  • Missing/damaged flooring or tiles
  • Missing built-in appliances
  • Missing bathroom fixtures
  • Water damage/water or dampness in basement
  • Missing handrails on staircases with 3 or more steps
  • Remaining life of roof
  • Missing gutters
  • Soffit/fascia/siding damage
  • Utilities operational
  • Well/septic damage
  • Water heater (relief valve and proper strapping)

Find a Loan

I want a low down payment and the greatest flexibility.

A Fannie Mae HomeStyle® loan may be your best choice. The down payments is as low as 3% if you’re a first-time homebuyer, 5% for all other borrowers. You can:

  • Borrow renovation funds up to 75% of the after-improved property value.
  • Fund small updates and major remodels.
  • Use the loan for a 1-4 unit owner-occupied property, second home, or single-unit investment property.

I’m only making minor repairs.

An FHA 203(k) Limited loan allows you to borrow up to $35,000 for minor, non-structural renovation projects, including:

  • Roof
  • Gutters
  • Downspouts
  • Existing HVAC systems
  • Plumbing and electrical systems
  • Flooring
  • Painting
  • Weatherization (insulation, storm doors, windows, weather stripping)
This loan is for 1-4-unit owner-occupied properties only, and down payments are as low as 3.5%. The loan amount is subject to FHA loan limits.
 

I want to make major renovations.

An FHA 203(k) Standard loan requires a minimum of $5,000 in repairs with no maximum cost (the loan amount is subject to FHA loan limits). It requires a HUD consultant to inspect the property, consult on the repairs and costs, manage the project, and provide a work write-up. Renovations can include minor repairs and major structural and reconstruction projects, including:

  • Upgrading garages, bathrooms, and kitchens (including new appliances)
  • Removal of health and safety hazards
  • Landscaping and other aesthetic improvements
  • Installation of wells or septic systems
  • Handicapped accessibility alterations
 
This loan is for 1-4 unit owner-occupied properties only, and down payments are as low as 3.5%.
 

I’m a veteran.

A VA Renovation loan offers great benefits to qualified veterans, military members, and their families.

  • No down payment or mortgage insurance.
  • The seller can contribute up to 4% of the sale price toward closing costs (more for certain property types).
  • Fund up to $35,000 in renovations (capped at 25% of the after-improved value; includes contingency reserve, permit fees, inspection fees, title updates, and supplemental origination fee). 

Learn More About Renovation

Our free renovation guide provides information you need to understand different financing options and requirements.
 

DOWNLOAD RENOVATION GUIDE