FNMA Homestyle Loan

One of the best-known loans for home improvements is Fannie Mae’s HomeStyle Renovation loan. With this type of loan, you are able to buy a house and renovate all under one loan. This is one of the most popular loans because it is a convenient way to make improvements to a new house.

Some of the requirements for an FNMA Homestyle loan are:

  • Borrowers need to meet standard eligibility requirements for a traditional mortgage, including a minimum credit score of 620 and proof of income.
  • Borrowers must choose their own contractor and have a “construction contract” with their contractor in place. The contractor must also be vetted by the lender and approved based on their experience and qualifications.
  • Borrowers can do some “do-it-yourself” work on their property provided it is not a manufactured home, but that portion of the work cannot exceed 10% of the completed value of the property.

FHA 203k Loan

FHA 203(k) Rehab Loan is also referred to as just a renovation loan. It allows homebuyers and homeowners to finance both the purchase or refinance along with the renovation of a home through a single mortgage.

Some of the requirements for an FHA 203(K) Loan are:

  • For a primary residence, you must have a credit score of at least 620.
  • You have to make a down payment of at least 5 percent of the purchase price of the home.
  • A certified contractor must prepare and submit a cost estimate and details of the work to be done.

VA Renovation Loan

The VA renovation loan, also referred as the VA rehabilitation loan, is a VA-guaranteed loan program that allows home buyers to purchase a home and fund their repairs and improvements. The purpose of a VA renovation loan is to ensure that the home meets the minimum standards to qualify for VA financing.

Some of the requirements of a VA Renovation Loan are:


  • The homeowner needs to apply for a VA Cash-out Refinance or VA purchase in order to be eligible to fund your repairs with a VA renovation loan.
  • The homeowner must use a registered VA builder or contractor.
  • All homes to be purchased with a VA loan must meet MPR as outlined by the VA.

Have a question about one of our loans?

Subscribe to our Newsletter