Renovation loans are designed to purchase or refinance homes that need significant repairs, or where you desire to update/upgrade the property. A great loan for buying or refinancing a Fixer-Upper!
Limited 203(k) Mortgage
FHA's Limited 203(k) program permits you to finance up to $35,000 into your mortgage to repair, improve, or upgrade your home. You can use this program to update or repair finishes and fixtures, and to make a home move-in-ready. You can not use this program to install a pool, or to make structural alterations.
The Section 203(k) program is FHA's primary program for the rehabilitation and repair of single family properties. As such, it is an important tool for community and neighborhood revitalization, as well as to expand home ownership opportunities. This program removes the $35,000 limitation of the Limited 203(k), and does permit structural changes. You can use this program to buy or refinance a home requiring a total renovation, so you can truly make it your home!