Rehab Loan Finance the house and the fixes.

Buy the house and finance the renovation in one loan.

A rehab loan combines the purchase price of a home and a renovation budget into a single mortgage. You close once, draw funds for the work as it's completed, and end up with one monthly payment.

Useful when you've found a home with great bones but outdated finishes — or when a buyer's market gives you negotiating room on a fixer-upper.

The two main programs

FHA 203(k)

The most flexible and common rehab program. Available in two flavors: a Limited 203(k) for cosmetic and minor structural work up to roughly $35,000, and a Standard 203(k) for major rehab including structural changes. Same FHA underwriting (3.5% down, primary residence only) plus an approved consultant for the renovation portion.

VA Renovation Loan

A VA-backed rehab option for service members and veterans. Combines purchase financing with funds to bring the home up to VA Minimum Property Requirements or to fund moderate improvements. Limits are tighter than FHA — typically only minor and moderate repairs are eligible.

How it works

• The lender appraises the home in its current condition AND its projected post-renovation value.
• Renovation funds go into an escrow account and are released to the contractor as work milestones are completed.
• A licensed contractor and an approved scope-of-work are required.
• Time to complete the renovation is typically capped at six months.
• Same down payment and credit standards as a regular FHA or VA loan.

Looking at a property that needs work? Send us the listing and we'll model what a 203(k) or VA Renovation could do.

Get started today!

Tell us a little about your situation and we'll send personalized loan options within one business day.