Buy It Rough. Finance The Fix.

Saxton Mortgage does. At least one HomeStyle Renovation program we offer finances a purchase or limited cash-out refinance with the renovation built in, starting at a 680 credit score, on a primary residence, second home, or one-unit investment property. Renovation costs can be up to 75% of the home’s as-completed value, and the work must be finished within 9 months of closing.

HomeStyle sets no minimum renovation amount and can be used on a single-unit vacation home or rental. FHA’s Standard 203(k) has a $5,000 repair minimum and requires a 203(k) Consultant, and its Limited version caps total rehab costs at $75,000.*

The as-completed value is the appraiser’s estimate of what the home will be worth after the renovation is finished. The appraiser builds it from your plans and specifications, and the lender uses those same plans to set how much financing is available.*

After closing. Fannie Mae requires the work to be finished within 15 months of the closing date, with a limited extension of up to 18 months in rare cases, while one program imposes a shorter 9-month deadline. That program can release up to 50% of renovation costs at closing as an initial draw.*

Yes. Plans and specifications from a licensed contractor, renovation consultant or architect must describe all the work with start and completion dates. Later changes need a change order showing the new work, its cost and timing, and a contingency reserve can cover unforeseen repairs.*

Yes for single-unit properties, through Fannie Mae’s Do It Yourself option, which is not available for manufactured homes. The lender must approve the work in advance and inspect every item costing more than $5,000, and you can be reimbursed for materials but not for your own labor.*

No. HomeStyle carries conventional mortgage insurance, which under Fannie Mae’s guide can stop once applicable law or Fannie Mae’s own rules call for cancellation. An FHA 203(k) loan carries FHA’s annual premium instead, whose duration turns on the loan amount, financing level and mortgage term.*

Plan for it in the contract timeline. Renovation costs are based on plans and specifications plus your contractor’s bids, the appraisal must give an as-completed value, and you choose the contractor yourself because the lender cannot pick or refer one. Ask your agent to allow time for those steps.*

Yes. HomeStyle Renovation is the conventional renovation loan, and the FHA 203(k) is the government one. Both finance the purchase and the work in a single loan underwritten on the after-improved value. The conventional route matters when you want mortgage insurance that can end once you have equity, rather than insurance that stays.

Fewer than you would expect. Renovation loans need work after closing that a standard purchase does not, managing the funds and confirming the work is finished, and plenty of mortgage lenders would rather not. We offer it, subject to specific program approval, so confirm availability with us before you build a contract around it.

Ask three things. First, whether the lender actually offers HomeStyle Renovation itself, because plenty of conventional renovation loans advertised online turn out to be a referral to someone else. Second, how the renovation funds are held and released after closing, since that process is where a renovation loan succeeds or stalls. Third, whether the loan is underwritten on the after-improved value, which is what allows the work to be financed at all. HomeStyle renovation mortgage lenders that manage the draws in-house tend to close cleaner, because the people who approved the scope are the ones confirming the work is done. We offer it, subject to specific program approval.

Reno loan is shorthand for any mortgage that rolls repair costs into the loan. HomeStyle Renovation is Fannie Mae’s conventional version, and programs we offer also include FHA 203(k) and a VA renovation loan, each governed by separate occupancy and contractor rules.*

That is the case it is built for. Because the loan is underwritten on the after-improved value rather than the condition of the home on the day you write the offer, a house that needs work before you can live in it can still be financed, with the purchase and the renovation in a single closing rather than two. Subject to specific program approval.

People use rehab loan, reno loan and renovation loan to mean the same product. On the conventional side it is the HomeStyle Renovation Loan. The FHA 203(k) is the government equivalent, and the difference that usually decides between them is the mortgage insurance, which on conventional financing can end once there is enough equity.