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
Health & Safety, livability Structural repairs allowed Luxury items not allowed
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
Purchase Rate/term refinance
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.