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Renovation Loan

One loan to buy the home and fix it up. A renovation loan — like the FHA 203(k) — bundles the purchase price and the cost of repairs into a single mortgage, based on what the home will be worth once the work is done. It's how a fixer-upper becomes the place you've been picturing.

Buy + renovate in one loanStandard & Limited 203(k)Based on after-reno value
Overview

What is a Renovation Loan?

A renovation loan rolls the cost of buying (or refinancing) a home together with the cost of improving it into one mortgage. Instead of taking out a separate loan or paying cash for repairs, you finance both at once — and the amount you can borrow is based on the home's value after the planned renovations are complete, not its current as-is condition. The most widely used version is the FHA 203(k), which comes in a Standard form for major projects and a Limited form for smaller ones.

Along the Emerald Coast, plenty of well-located homes have great bones but need some love — an older coastal cottage, or a place that took a beating from a storm. A renovation loan lets a buyer take one of those on and make it right from day one, without draining savings to do it.

Benefits

Why choose a Renovation Loan?

One Loan, One Payment

Finance the purchase and the improvements together, with a single closing and a single monthly payment.

Turn a Fixer-Upper Into Home

Buy a place with good bones and renovate it into the home you actually want — on your terms.

Based on After-Improved Value

Borrowing is figured on what the home will be worth once the work is finished, not its as-is condition.

Standard or Limited 203(k)

Choose a Standard 203(k) for major or structural work, or a Limited 203(k) for smaller, cosmetic projects.

How It Works

How a renovation loan works

Three simple steps from “just looking” to keys in hand.

1

Get pre-qualified

We'll review your credit, income, and goals to show what you can take on — the purchase plus a renovation budget — and give you a clear price range.

2

Plan the scope & get bids

Work with a licensed contractor to define the project and gather bids. An appraiser uses that scope to estimate the home's after-improved value.

3

Close and draw funds

At closing the loan funds the purchase, and the renovation money is set aside and released to your contractor as the work is completed.

FAQ

Frequently asked questions

What is a renovation loan?
A renovation loan, such as the FHA 203(k), lets you roll the cost of buying (or refinancing) a home together with the cost of repairs and improvements into a single mortgage. The loan is based on the home's value after the planned work is finished, not its as-is condition.
What's the difference between a Standard and a Limited 203(k)?
The Limited 203(k) is for smaller, non-structural projects like cosmetic updates, new flooring, paint, or appliances. The Standard 203(k) is for larger jobs that can include structural repairs, additions, or major systems work, and it requires a HUD consultant to oversee the project.
What projects qualify for a renovation loan?
A wide range of improvements qualify, including roofing, HVAC, plumbing and electrical, kitchens and baths, flooring, energy-efficiency upgrades, and accessibility changes. The work must be permanently attached to the home and add to its value. Luxury items like a new pool generally are not eligible.
Can I use a renovation loan to refinance my current home?
Yes. You can use a renovation loan to refinance a home you already own and fund the improvements in the same loan, with the amount based on the home's projected after-improved value.
How is the after-improved value determined?
An appraiser reviews your contractor's bids and scope of work, then estimates what the home will be worth once the improvements are complete. That after-improved value sets how much you can borrow, and FHA 203(k) financing can be based on up to 110% of it.

Ready to get started?

Let’s find out if a Renovation Loan is the right fit for you. It takes just a few minutes — no obligation.

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