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  • Writer's pictureRebecca Richardson - Mortgage Consultant

Renovation Options

So, you’ve found a home with good bones, but it’s a little rough around the edges (and maybe your credit is, too). Don’t give up hope—there’s still a way to make the home what you want!

FHA 203k

We know that renovations can cost tens of thousands of dollars, which often poses the question: how do I pay for these renovations on top of the downpayment and closing costs?

Luckily, there’s a relatively simple solution: the FHA 203k loan! The FHA 203k is a specialized FHA loan that allows you to renovate your home and finance the repairs back into the loan. Here’s a tip: for this to work, you need to look at the homes that aren’t super cute or ones that have been on the market for a while.

Sometimes these homes can be more work—but the payoff is bigger. As I like to say, “You have to risk it for the biscuit.”


Are you selling a home that’s in less than perfect condition?

Will it “not go” FHA, VA, or USDA, but most buyers want it to? Luckily, I have a simple solution for you: there are renovation loan options for each of these loan types. Regular guidelines still apply, but if the house is being sold below market because of the condition it’s in, these programs can be a great option.

You can even take it a step further and get preliminary quotes on work that you may have done in the future, like new windows or new flooring. That helps a ton on the front end when lenders make sure the buyers can qualify for the house and repairs. It’s all about turning that ew into an okay.

Conventional Rehab

It’s time we admitted that there’s no wave of foreclosures coming; no sudden increase in inventory. Now that we’ve accepted this, there are two important things for buyers to keep in mind:

1. Home prices continue to go up. So, that home you like? It will be more expensive in a few years.

2. The home that’s a smart buy? It might not look how you want it or have everything you want.

So, what do we do about this? Something called a Homestyle Renovation Loan. This is a 30-year conventional loan that allows repairs and improvements financed into the loan. It helps you take a great buy and turn it into a great house.

This market requires creativity and flexibility, but the long-term benefits pay off.

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