THE BIG PICTURE
Explore financing that may combine purchase and improvement costs.
Learn the product categories
Programs may include FHA 203(k) or conventional renovation products such as HomeStyle Renovation; availability and requirements change.
Define the project
Get realistic contractor estimates, review the scope of work, and consider permit and timing requirements.
Confirm property eligibility
Not every home, repair, or borrower qualifies. Lenders determine documentation, appraisal, down payment, and contractor requirements.
Understand how funds are released
Renovation loans can include escrowed repair funds and inspection or draw procedures rather than handing the full repair budget directly to the buyer.
Budget for the unexpected
Older homes may reveal additional issues after work begins. Discuss permitted contingencies and reserves with your lender.
Questions worth asking
- What work is permitted by this specific loan product?
- What are the contractor and draw requirements?
- How could repairs affect the closing and occupancy schedule?
This educational resource is general information, not legal, tax, or lending advice. Specific rights, obligations, costs, and deadlines depend on your documents and circumstances. Confirm current rules with qualified professionals and official sources.