Buy a home and finance the rehab in one loan. Or refinance your current home and roll the renovation budget into the new mortgage. PRMG offers the full renovation product suite: FHA 203(k), Fannie Mae HomeStyle, Freddie Mac CHOICERenovation, VA Renovation, and USDA Renovation. One closing, one rate, one payment.
Every major renovation product on the market, available through PRMG. We pick the right one based on the property, your budget, and the type of work you want to do.
Up to ~$75,000 in non-structural repairs. Cosmetic and minor work: paint, flooring, kitchens, baths, roofing, HVAC, appliances. No HUD consultant required. Cleanest path for first-time buyers who want a turnkey home with light updates rolled in. 3.5% down minimum.
Best for: First-time buyers, cosmetic rehabs, no structural work.
No dollar cap within FHA loan limits. Major rehabs, structural work, room additions, foundation repairs, properties that don't meet FHA Minimum Property Standards as-is. Requires a HUD consultant to oversee the project. 3.5% down minimum.
Best for: Fixers, foundation/structural work, conversion projects.
Conventional renovation, up to 75% of the after-improved value. Finances ANY permanent improvement including luxury items (pools, outdoor kitchens, hardscaping) that FHA 203(k) excludes. Works on primary residences, second homes, AND investment properties. 5% down minimum on primary.
Best for: Investors, second homes, luxury upgrades, jumbo-adjacent rehabs.
Conventional renovation product comparable to HomeStyle. Finances repairs, renovations, additions, and resiliency improvements (storm shutters, fire-resistant materials, hurricane bracing). Available on primary, second home, and investment properties. Often a stronger fit than HomeStyle for specific scenarios.
Best for: Buyers in storm-prone areas, FICO and reserve thresholds Freddie reads more favorably than Fannie.
Smaller, faster renovation product for cosmetic-only projects. Up to ~$50,000 in non-structural work with simplified documentation and faster underwriting than full CHOICERenovation. No general contractor required for minor projects.
Best for: Light kitchen/bath updates, paint, flooring, appliances, fast turn times.
$0 down VA financing with renovation included. Up to ~$50,000 in non-structural improvements rolled into a VA purchase or refinance. Must be completed within 120 days of closing. Maintains the full $0 down, no-PMI VA benefit while financing the rehab.
Best for: Eligible veterans buying a fixer or refinancing into VA with a rehab budget.
$0 down USDA financing with renovation rolled in. Available in eligible rural and suburban areas. Combines the USDA Single Family Guaranteed loan with a rehab budget for repairs and improvements, all in one closing.
Best for: Low to moderate income buyers in USDA-eligible areas who want a turnkey home.
Standard FHA purchase with a smaller escrow for required repairs. Used when the property mostly meets FHA standards but needs minor repairs (paint, missing handrails, broken windows). Faster and cheaper than a full 203(k) for small repair-only scenarios.
Best for: Properties with a short list of FHA-required repairs, not full renovations.
Roll energy upgrades into the FHA loan. Solar, insulation, windows, HVAC, heat pumps, tankless water heaters. EEM cost is typically excluded from DTI calculations because the projected energy savings offset the payment.
Best for: Buyers planning solar or major HVAC upgrades on an FHA purchase or refinance.
The mechanics are the same across most renovation programs. Here is how a typical purchase + rehab closes.
We review credit, income, and goals, then match you to the right renovation program. You shop with a clear ceiling on purchase price plus rehab budget.
You go under contract on the home. A licensed contractor walks the property and provides a detailed bid for the scope of work. For Standard 203(k), a HUD consultant scopes the project too.
The appraiser values the home based on what it will be worth AFTER renovations are complete, not as-is. This is what unlocks the rehab budget against the future value of the home.
You close on the loan. The purchase portion funds the home, the rehab budget goes into an escrow account. Some programs allow occupancy during minor work, others require waiting until repairs are complete.
The contractor completes work in phases. Each phase is inspected, then the contractor is paid from the escrow account in draws. Final inspection releases the last payment. Loan converts to a standard mortgage once renovations are complete.
Combine the purchase price and renovation budget into one estimated monthly payment.
Estimates only. Down payment minimum varies by program (FHA 3.5%, VA/USDA 0%, HomeStyle/CHOICERenovation 3-5% on primary, 15-25% on investment). Loan is sized using the after-improved value of the home. Property taxes, insurance, mortgage insurance, and HOA dues are additional. Not a commitment to lend.
The big four. Each one shines in a different scenario.
Renovation loans are sized on the after-improved value of the home, not the as-is value. The appraiser estimates what the property will be worth once the renovations are complete, and the lender qualifies you against that future value. This is what lets you finance work that wouldn't be supported by the current appraisal.
Yes, on Fannie Mae HomeStyle Renovation and Freddie Mac CHOICERenovation. FHA 203(k), VA Renovation, and USDA Renovation are limited to primary residences. Investor down payment typically runs 15-25 percent and credit floors are higher.
Depends on the program:
For most renovation programs, yes. You need a licensed and insured general contractor with appropriate credentials for your state. The contractor signs a "Homeowner/Contractor Agreement" with you and provides itemized bids that the lender reviews. CHOICEReno eXPress and some smaller Limited 203(k) projects allow homeowner-completed minor cosmetic work, but the contractor route is the standard.
Typically 30 to 45 days from offer to close, slightly longer than a standard purchase because of the contractor bid review, scope of work documentation, and after-improved appraisal. The renovation itself can take anywhere from 30 days (Limited 203(k) cosmetic work) to 6+ months (Standard 203(k) full rehab).
Yes. HomeStyle Renovation and CHOICERenovation allow ADU construction or conversion, including detached ADUs and garage conversions. FHA 203(k) Standard allows ADUs in some scenarios with HUD consultant approval. Especially relevant in California given recent ADU legislation.
Generally no for major work, with limited exceptions. Most renovation programs require licensed contractors because the lender's funds are at risk until repairs are complete. Some Limited 203(k) and CHOICEReno eXPress projects allow self-help for very minor cosmetic items, but the bulk of the work needs to be contractor-completed.
FHA 203(k) excludes pools, outdoor kitchens, fire pits, gazebos, hardscape that's purely decorative, and similar non-essential amenities. If you want to finance any of those, you need HomeStyle or CHOICERenovation. Pool repairs to existing pools are sometimes allowed under 203(k) (safety/health), but new pool construction is not.
Yes. All major renovation programs offer a refinance version. You pay off your existing mortgage and roll the renovation budget into the new loan in one transaction. This is often the cleanest path when your existing rate is already comparable to current market rates and you want to fund major improvements without a separate second-lien HELOC.
Yes, you start making mortgage payments at closing on the full loan amount (including the escrowed rehab budget). Some programs offer a financing structure that includes up to 6 months of mortgage payments rolled into the loan to cover the period when the home isn't habitable. We'll model this into your monthly cash flow.
Property type, scope of work, and your goals. We'll match you to the right program and run the math.