What is a home renovation loan?
A renovation loan can help finance the cost of purchasing or refinancing a home along with eligible repairs and improvements. Depending on the loan program, financing may take the home’s expected value after renovations into account, giving you a way to fund the home and the work it needs.
Who are renovation loans for?
Buyers looking at fixer-uppers
Buy a home with potential and finance eligible improvements at the same time, giving you the flexibility to start making it your own sooner.
Owners looking to update the home they have
Ready to make some changes? Renovation financing can help cover eligible projects like a new kitchen, an updated bathroom, a new roof or additional living space.
Veterans, active-duty military, or buyers in rural areas
VA and USDA renovation options may let eligible buyers finance the home and the repairs with little or nothing down.
More renovation financing options
Fairway offers several renovation programs. The right one depends on the loan you qualify for and the size of the project.
FHA 203(k)
If the home you want needs work, an FHA 203(k) loan can combine the cost of renovations and your mortgage into one loan when you buy or refinance.
VA Renovation
Bring your vision for the home together with your financing. Eligible military borrowers can finance a home along with qualified repairs and improvements using a VA renovation loan.
Renovation Refinance
Refinance your existing mortgage while financing eligible home improvements, giving you one convenient loan to address your refinancing and renovation goals.
USDA Renovation
Turn the right home into your ideal home by combining your purchase and renovation costs into one convenient financing solution, including zero down payment.
Fix-and-Flip Loan
Financing for properties you plan to purchase, renovate, and sell.
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Renovation loan benefits and requirements
See what a renovation loan can do for your project, and what it asks of you, before you talk numbers.
One loan, one closing
The home and the repairs share one mortgage and one monthly payment.
Borrow on the finished value
Many loan options are based on what the home will be worth once the work is done, not what it's worth today.
Room to breathe during the work
If renovations make the home temporarily unlivable, some programs may allow you to finance several months of mortgage payments into the loan.
A licensed contractor
A licensed contractor does the work, and the final payout follows a final inspection.
Repairs that fit the program
Some programs cover smaller, cosmetic updates; others handle structural work or added space. Your loan officer will match your project.
Credit, income and a down payment
What you'll need depends on the program. Your loan officer will show you where you stand.
Compare side by side
Renovation loans vs personal loans
Many people compare personal loans for home improvement with a renovation mortgage. Here's how they differ.
Personal loan
A separate loan from another lender, often for smaller projects.
How much you can borrow
- Based on your credit and income
Your payment
- A second payment on top of your mortgage
Best for
- Smaller projects you'll finish quickly
Renovation loan
Part of your mortgage, built around the finished home.
How much you can borrow
- Based on the home's value after the work
Your payment
- Part of one mortgage payment
Best for
- Bigger projects or buying a fixer-upper
Tools & Calculators
Use our mortgage calculators to estimate payments, compare options, and make a more informed decision before your next move.
FAQs about loans for Renovation Loans
Whether you’re exploring your options, already have a loan with Fairway, or need help finding the right place to go, connect with a loan officer to point you in the right direction.
Loan Servicing
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Disaster Relief Hotline
A renovation loan helps finance eligible repairs or improvements to a home. Depending on the program, it may be used when buying a home or renovating one you already own.
It can be a good option if you want to finance improvements rather than pay for the entire project out of pocket. The right choice depends on your project, budget, property and financial goals.
Yes, we offer VA renovation financing.
The Limited 203(k) covers smaller, non-structural updates like new flooring or cabinets. The Standard 203(k) handles larger projects, structural work and added square footage.
Yes. A renovation loan can refinance your current mortgage and fund your repairs and upgrades in the same loan.
Yes. Repairs must be done by a licensed contractor and be a permanent part of the home.
That depends on the scope of your renovation and whether the home can be occupied safely while work is underway.
Ready to plan your renovation?
It starts with a conversation. Tell us about the home and the project. Your local Fairway loan officer will reach out and walk you through which renovation loan fits.
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