Buy or refinance and remodel with one loan

The FHA 203(k) Standard is the program you reach for when a house needs real work, not just paint and counters. It rolls the purchase price and the renovation budget into a single 30-year fixed FHA mortgage, and unlike the Limited version, it allows structural changes — foundation repair, room additions, moving load-bearing walls, and gut rehabs are all on the table. There is no hard cap on the renovation amount as long as the total loan stays within the county FHA limit.

Because the scope is bigger, the program requires a HUD consultant who writes the work write-up and inspects each draw, plus a licensed general contractor. Down payment is the same 3.5% FHA minimum based on the after-improved value, and the home has to be your primary residence. It is slower and more paperwork-heavy than a Limited 203(k), but for a true fixer it is often the only way to buy and rebuild with one closing.

HomeStyle is Fannie Mae's answer to the 203(k), and it is the renovation loan I lean on most for buyers who can qualify conventionally or who want to skip FHA mortgage insurance. It funds the purchase (or refinance) plus the renovation in one conventional loan, and the scope is wide open — structural work, additions, ADUs, pools, landscaping, even luxury items are eligible as long as they are permanently affixed and add value.

Down payment can be as low as 3% for an eligible first-time buyer on a single-family primary, with higher minimums for second homes, investment properties, and 2-4 unit buildings. The renovation budget can run up to 75% of the lesser of the as-completed value or purchase price plus reno cost, which gives serious room for ambitious projects. Loan amounts follow standard conforming or high-balance limits by county.

CHOICEReno eXpress is the lighter, faster lane of CHOICERenovation, built for cosmetic and non-structural work where the full renovation underwriting would be overkill. Think kitchens, baths, flooring, paint, appliances, roof, HVAC, and similar updates — the kinds of projects most move-in buyers actually do.

Because the scope is limited, the documentation and oversight are lighter than a full CHOICERenovation or a 203(k) Standard. Eligible renovation costs are capped at a percentage of the as-completed value (commonly around 10-15% depending on occupancy and property type — current and approximate, verify for your scenario), and the program is available on primary residences, second homes, and investment properties under the standard CHOICERenovation framework.

When the deal is an investor flip — short timeline, distressed property, exit by sale or refinance in 6 to 18 months — hard money is usually the right tool, not a 203(k) or HomeStyle. These loans are written by private and portfolio lenders who size the deal on the property and the projected after-repair value (ARV), not your W-2 or tax returns. Closings can happen in days, not weeks, which matters when you are competing for off-market or auction properties.

Typical structure is interest-only payments during the rehab, 70-75% of purchase plus up to 100% of renovation costs financed (subject to a total loan amount capped at around 70-75% of ARV — current and approximate). Rates and points are higher than agency loans, but the math works when the project hits its numbers. We shop multiple fix-and-flip lenders so the leverage, draw schedule, and exit fit your specific deal and experience level.