One of the best parts of homeownership? You are in the driver’s seat when it comes to choosing home financing options. When it’s time to fund a renovation, you can pick from a variety of different home loans to help serve your needs, wants and goals.

As the top-rated renovation lender in the United States, Homebridge is experienced with helping homeowners select the right renovation loan for them.

Using a renovation loan allows you to make cosmetic or structural repairs to a home you already own or are looking to purchase.

Each renovation loan will have different conditions that must be met in order to qualify, but regardless, buyers have several options available to them.

If you are purchasing a home to renovate:


A conventional renovation loan is a simple 30-year fixed-rate loan used to help purchase a home.

With a conventional loan, you will use the Fannie Mae (FNMA) HomeStyle® Renovation program with a down payment of anywhere between 5-20% of the home purchase price.

The FNMA HomeStyle® loan is a popular renovation option that can be used for both primary homes, second home and investment properties.


The FHA 203(k) is also a 30-year fixed-rate loan that will help you purchase a home with a low down payment amount, sometimes as low as 3.5%.

The FHA 203(k) loan will allow you to make structural alterations and additions, remodels, painting, and anything else that helps to modernize your home.

This a great option for people who want to purchase fixer-uppers.


A VA loan is a loan that is guaranteed by the U.S. Department of Veterans Affairs. This is our nation’s way of saying “thank you” to its veterans and their families. When purchasing a new home that needs repairs, eligible service members can use a VA Renovation loan.

The benefits of a VA Renovation Loan differs from other renovations loans and includes the following:

  • 0% down payment upon closing
  • No private mortgage insurance (PMI) during the life of the loan
  • Lowest interest rates of any home loan program
  • Credit score leniency

If you are renovating a home you already live in:

Home Renovation

Throughout your time as a homeowner, you may discover that various parts of your home are in serious need of repair. You have a choice between FHA 203(k) and FNMA HomeStyle® loans.

FHA 203(k) (Standard and Limited)

The FHA 203(k) comes in two types: standard and limited. The FHA 203(k) standard loan has no limits on your renovation costs. Major renovations are the norm, so owners usually use the FHA 203(k) Standard to replace, construct or demolish different parts of their home that need overhauling.

If you have smaller renovations to make, such as cosmetic changes, then the FHA 203(k) Limited will be the loan you’re looking for.

FNMA HomeStyle®

This loan will increase the amount you can use towards your home renovation. It will allow you to add things such as in-ground pools and other luxury additions that are not possible with an FHA 203(k) Standard or Limited loan.

HomeStyle® can not only help you build equity and increase your home’s value but add comforts that will turn your house into a home

Refinance + Renovation

A common way to refinance a home loan is to wrap it in the cost of a renovation loan. Many buyers have purchased their home in a time of high-interest rates and are looking to refinance to a lower rate. Simultaneously, these people also want to renovate.

This is a perfect situation for a renovation refinance. By wrapping up the costs of the home renovation into the mortgage, the buyer has the chance to pay for their mortgage at a lower interest rate.

Most buyers who choose a renovation refinance use an FNMA HomeStyle® loan to do so.

Choose the Renovation loan financing that’s right for you

The processing of learning which renovation loan fits your unique needs, and choosing the appropriate program, can seem overwhelming. Proven, professional support from a Homebridge Mortgage Loan Originator can make all the difference in turning a complex process into a simple and enjoyable one. If you’re ready to get started on renovating your home, connect with one today.

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We recognize this is a difficult time for many people. Click here or call 866-913-2951 for more information and to learn about current options available to our borrowers.