What is a renovation loan?

Eagle Home Mortgage has a variety of renovation loan options that were created specifically for homebuyers who want to finance the cost of home improvements into their mortgage. These financing options can eliminate the need for large out-of-pocket renovation costs that can drain your savings.

A renovation loan might also be the answer if you’re having difficulty getting approved for a loan on a house because it needs some repairs.

Can I qualify for a renovation loan?

Qualifying criteria for renovation loans varies depending on the type of loan that best fits your needs. Ask your local loan officer about the different options, which may include:

FHA 203(k) Standard
This renovation mortgage allows buyers to finance major or minor upgrades on a home using the future value of the home, all without having to complete the work before the actual closing date. It allows for major structural changes as well as landscaping, new appliances and more on primary residences. Learn more about FHA 203(k) financing here.

FHA 203(k) Limited
Designed specifically for homes that may need some cosmetic repairs or upgrades, the FHA Limited (formerly known as the Streamline 203(k) mortgage) is intended for primary residences that can be remodeled, repaired, or updated for less than $35,000.

FHA 203(h)
The FHA 203(h) mortgage was designed to help borrowers whose homes were destroyed or seriously damaged in designated disaster zones purchase a new home or rebuild their home with zero down. If you want to see if you qualify, contact your local loan officer or check out our FHA 203(h) Guide.

The Fannie Mae HomeStyle Renovation Mortgage
This Conventional renovation mortgage may have stricter guidelines when compared to the FHA options, but it has less property restrictions. For example, you can get HomeStyle financing for a second home or an investment property.

How much is the down payment for a renovation loan?

An FHA renovation loan typically requires a 3.5% down payment. The Fannie Mae HomeStyle Renovation Mortgage minimum down payment is typically 5%. Speak to your local loan officer about the best option for your renovation project.

Eagle Home Mortgage First-Time Homebuyer Guide

A First-Timers Guide to Mortgages

Are you a first-time homebuyer considering a Renovation Loan? Then our First-Time Homebuyer Guide can help you through the entire mortgage process, from pre-approval to closing and beyond.

Download the Guide Now


  • The ability to borrow based on the expected value of the upgraded home after renovations
  • The opportunity to restore an older home with charm
  • Simplify the process by only having one application and one mortgage payment
  • Interest, including the cost for renovation, may be tax deductible*

*Not tax advice; homebuyers should consult with their tax advisor

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