Purchase and fix up your dream home with a rehab home loan. A rehab loan lets you include the cost of home improvements and repairs into a new home loan. Finance your home’s purchase price and any repairs or upgrades to be made in one mortgage.
Loan Program
Renovation Home Loans
Is a renovation loan right for you?
Benefits of a renovation loan
- Save Money:Â Combine your rehab loan and your mortgage into a single home loan, which limits your loan closing costs.
- Buying or refinancing: Our rehab loan is available to both buyers and refinancing households.
- Expanded Options: Find the right rehab loan whatever your home improvement project and needs.
Renovation loan eligibility requirements
- Good credit score
- Down payment of 3.5% or more
- Self-occupancy of the property
- Debt-to-income ratio below 45%
Check out what your monthly payment could be by using our 203k Renovation Mortgage Calculator…
Our mortgage calculators are for demonstration purposes only and may not reflect actual numbers for your specific mortgage. Contact us and we will walk you through the best possible mortgage scenario for your specific needs!
Monthly Payment Breakdown
Principal & Interest (P&I)
$
MIP
$
Taxes & HOA
$
Homeowners Insurance
$
Loan Type
Purchase Price
Home Value
$
Down Payment
$
Current Mortgage Balance
$
Total Renovation Costs
$
Upfront MIP
$
Total Loan Amount
New Loan Amount
$
Contingency Reserve
A contingency reserve is an additional amount of money set aside to cover unexpected costs that may arise during the renovation process. It's typically 10-20% of the total renovation cost. This reserve helps ensure that you have funds available if unforeseen expenses occur, helping to keep your project on track.
Estimated Taxes & Insurance
Property taxes are generally estimated to be 1.2% of the home's value, but may vary based on your location. Annual homeowners insurance is roughly 0.35% of the home's value but can change based on insurer. Your loan specialist can help you determine property tax and insurance rates in your area.
Expected Home Value Increase
The expected increase in home value to qualify for a home improvement mortgage can vary depending on the lender and loan program.
FHA 203(k) loans typically require that the improvements will increase the property value by at least the amount of the repairs.
Renovation Associated Costs
$
Renovation Cost Estimate
$
Contingency Reserve
$
Draw Inspection & Title Update
$
203(k) Consultant Required
203(k) Consultant Fees
$
203(k) Supplemental Origination Fee
$
Estimated Monthly Payment
$ /mo
Loan Type
Total Renovation Costs
$
Loan amount
$
Interest rate
Loan term
Taxes & insurance included?
Property tax
Homeowner's insurance
$
Upfront MIP
$
Annual MIP rate
$
Monthly MIP
$
HOA dues
$
Payment Breakdown
Amortization
Principal vs. Interest
Amortization Schedule Breakdown
Our detailed amortization schedule breaks down your mortgage payments, showing how they are split between interest and principal over the life of your loan.
Note: The actual monthly payment may be higher than what is shown here, as this schedule does not account for variable costs such as property taxes and home insurance, which are often included in your total mortgage payment.
- Principal payments: $ (the amount borrowed)
- Interest payments: $ (the cost of borrowing)
Tools
Explore Our free tools
Programs
Mortgage Solutions
Conventional
The most common traditional mortgage option, offering competitive rates and flexible terms for borrowers with stable income and strong credit scores.
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FHA
A government-backed loan designed to make homeownership accessible, featuring lower down payment requirements and more flexible credit guidelines for buyers.
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VA
An exclusive, zero-down-payment mortgage benefit provided by the government to honor and support active-duty service members, veterans, and eligible surviving spouses.
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Jumbo
Specialized financing designed for luxury homes or high-value properties that exceed the standard conforming loan limits established by Fannie Mae and Freddie Mac.
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Renovation
A convenient all-in-one loan that combines the purchase price or refinancing of a home with the funding needed to cover upgrades, repairs, or major remodeling projects.
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DSCR
Designed for real estate investors, this program qualifies borrowers based on the rental income generated by the property rather than personal tax returns or employment history.
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