Types of Renovation Loans

Types of Home renovation Loans
Program Conventional Conforming FHA Limited 203(K) FHA Standard 203(k)
Type of Repairs
  • Health & Safety, livability
  • Structural repairs allowed
  • Luxury items allowed
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  • Health & Safety, livability
  • Structural repairs allowed
  • Luxury items not allowed
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  • Health & Safety, livability
  • Structural repairs allowed
  • Luxury items not allowed
    		•
    Minimum Repair Amount
    $5,000
    $5,000
    $5,000 (FHA has requirements for what is allowed in the first $5,000)
    Renovation Amount
    Maximum renovation costs 50% of the after-improved value
    Maximum renovation costs $35,000
    No limit
    Do It Yourself Renovations
    Do It Yourself Renovations are not allowed. You must use a licensed contractor of your choice.
    Do It Yourself Renovations are not allowed. You must use a licensed contractor of your choice.
    Do It Yourself Renovations are not allowed. You must use a licensed contractor of your choice.
    Loan Types
    Fixed rate and ARMs
    Fixed rate
    Fixed rate
    Loan Limits
    High balance conventional loan limits (currently up to $529k)
    Determined by the county where you live. We can provide you this information or you can Google search your county's limits.
    Determined by the county where you live. We can provide you this information or you can Google search your county's limits.
    Minimum Down Payment
    Primary residence - 5% down. Second home - 10% down. Investment property - 20% down.
    3.5% of purchase price and renovation costs. Owner occupied only.
    3.5% of purchase price and renovation costs. Owner occupied only.
    Transaction Type
  • Purchase
  • Rate/term refinance
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  • Purchase
  • Rate/term refinance
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  • Purchase
  • Rate/term refinance
    		•
    Occupancy Type
  • Owner occupied
  • Second homes
  • Investment
    		•
    Owner occupied only
    Owner occupied only
    Units
  • 1-4 units (owner occupied)
  • 1 unit (second home or investment property)
    		•
    1-4 units (owner occupied only)
    1-4 units (owner occupied only)
    Contingency Percentage
    10% of contractor bid
    10% of contractor bid
    10% of contractor bid
    Contingency Reserve Usage
  • Health & safety first
  • Remaining funds at borrower’s discretion
    		•
  • Health & safety/unforeseen deficiencies only
    		•
  • Health & safety first
  • Unforeseen deficiencies
    		•
    Payment Schedule
  • Funds are disbursed after work has been completed and inspected by a third party inspector
  • Maximum 5 draws as work is completed.
    		•
  • Up to 50% up-front as requested by the contractor
  • Reminder of the funds when the borrower sign off that the work is complete and has been inspected if applicable.
    		•
  • Payments are made after a HUD- approved consultant approves the work.
  • Maximum 5 draws as work is completed.
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