Turn a Less Than Perfect Home into Your
Dream Home with a Renovation Loan!

About Renovation Home Loans

A renovation loan is a loan backed by the federal government and given to buyers who want to renovate a home. A renovation loan allows the borrower to finance the home, plus provides financing to do the necessary renovations to the home.

We're here to make the renovation home loan process easier, with tools and knowledge that will help guide you along the way, starting with our Renovation Loan Qualifier.

We'll help you clearly see differences between loan programs, allowing you to choose the right one for you whether you're a first-time home buyer or a repeat buyer.

The Renovation Loan Process

Here's how our home loan process works:

  • Complete our simple Renovation Loan Qualifier
  • Receive options based on your unique criteria and scenario
  • Compare mortgage interest rates and terms
  • Choose the offer that best fits your needs


Rather than buying a fixer-upper with the intention of updating it in the future using savings or high-interest credit cards, customize your home the way you want it now by financing the cost of renovations right into the mortgage loan.

Everyone has their own individual tastes, and paying out of pocket for renovations on elective OR maintenance items can be costly. Why not add your own personal touch or make repairs by using a renovation loan for the purchase?

As a buyer, you can do all of the following and MORE using renovation financing:

  • Replacing the roof
  • Updating the kitchen
  • Replacing HVAC or furnace
  • Replacing appliances
  • Replacing toilets and plumbing fixtures
  • Replacing flooring
  • Repainting, inside and outside
  • Adding square footage

Pick and choose what you want. There are endless options to create your dream home!

About FHA 203K Home Loans

Comparing Renovation Loan Options

  • Updating a kitchen or bathroom
  • Replacing fl ooring
  • Replacing appliances
  • Repairing the roof
  • Upgrading HVAC system and other energy effi cient upgrades

  • Building an addition
  • Building a new garage
  • Tearing down and rebuilding
  • Upgrading mechanical systems
  • Installing a well and/or septic system
  • Updating the interior
  • Renovating kitchens and bathrooms
  • Updating landscaping and site amenities
  • Adding square footage to the home
  • Putting in new fl ooring
  • Repairing pool and/or spa
DOWN PAYMENT AND LOAN-TO-VALUE (LTV)* 3.5% (96.5% LTV) 3.5% (96.5% LTV) 1-Unit Primary: 3% (97% LTV) [At least one borrower must be a fi rst-time homebuyer]
1-Unit Primary: 5% (95% LTV)
1-Unit Second Home: 10% (90% LTV)
1-Unit Investment: 15% (85% LTV)
Mortgage Insurance (MI) is required for any LTV that exceeds 80%.
  • 1- to 4-unit properties
  • Condominiums (internal repairs only)
  • Townhomes (internal repairs only)
  • 1- to 4-unit properties
  • Condominiums (internal repairs only)
  • Townhomes (internal repairs only)
ELIGIBLE OCCUPANCY TYPES Primary Primary Primary, Secondary, Investment
NUMBER OF DRAWS 1 initial and 1 final draw per contractor Up to 5 draws Up to 5 draws
ADVANCES Up to 50% of repair cost can be distributed at closing when requested in writing prior to close. Not allowed Not allowed
MATERIALS DRAWS Not allowed Not allowed Case by case, up to 50% of total materials budget, based on need
PROOF OF PERMITS Required within 30 days of loan closing Required on or before first draw Required on or before first draw
HOLDBACKS No holdbacks on draws 10% holdback on all draws, except final draw 10% holdback paid out with final draw
CONTINGENCY FUNDS AND CHANGES TO SCOPE OF WORK Contingency funds are intended for unforeseen repairs. Once all items on the bid are completed, contingency funds may be used for additional repairs or applied as a principal reduction.
COMPLETION DATE Work must begin within 30 days of loan closing, may not cease for any 30 consecutive day period and must be completed within six
months of loan closing.

Fairway is not affiliated with any government agencies. These materials are not from HUD or FHA and were not approved by HUD or a government agency.

Why a Renovation Loan?

Why a Renovation Loan?

The main benefit of these loans is that they give you the ability to buy a home in need of repairs that you might not otherwise have been able to afford to buy. Plus, the down payment requirements are minimal, and often you may be able to receive a favorable interest rate.

Renovation Loan Qualifier
Why a Renovation Loan?

Get Your Renovation Loan Quote Now!

I Want My Renovation Loan Quote!