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 renovation programs include FHA 203(k) Limited and Standard and Fannie Mae HomeStyle, with other renovation options that may be available. One closing, one rate, one payment for eligible borrowers.
The main renovation options available through PRMG, plus a few that may be available case by case. 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. A 203(k) consultant is optional (the fee may be financed), and work is commonly completed within up to 9 months. As little as 3.5% down at 580+ credit for eligible borrowers.
Best for: First-time buyers, cosmetic rehabs, no structural work.
$5,000 minimum in repairs; total loan within FHA county loan limits. Major rehabs, structural work, room additions, foundation repairs, properties that don't meet FHA Minimum Property Standards as-is. Requires a consultant from the HUD roster, allows up to 12 months for the work, and may finance up to 6 months of payments if the home is uninhabitable. As little as 3.5% down at 580+ credit for eligible borrowers.
Best for: Fixers, foundation/structural work, conversion projects.
Conventional renovation; renovation costs up to 75% of the lesser of price plus renovation or as-completed value. Can finance permanent improvements, which may include items FHA 203(k) excludes, subject to guidelines. Primary residences, second homes, and investment properties may be eligible. Up to 97% LTV on a one-unit primary for eligible borrowers. With PRMG, a hired contractor is required (no do-it-yourself work), and adding a separate unit is not eligible; ask first about any ADU plan.
Best for: Second homes, investment properties, and upgrades FHA 203(k) does not cover.
Freddie Mac conventional renovation option. CHOICERenovation may be available depending on current program availability and guidelines. Ask about current availability and how it compares to HomeStyle for your project.
Best for: Borrowers comparing conventional renovation options.
Freddie Mac option for smaller renovation projects. CHOICEReno eXPress may be available depending on current program availability and guidelines. Ask about current availability, limits, and contractor requirements.
Best for: Smaller update projects, if available.
VA renovation financing for eligible veterans. VA renovation financing may be available depending on current program availability and guidelines. Ask about current availability, limits, and timelines before planning your project.
Best for: Eligible veterans interested in buying a home that needs work.
USDA financing with repairs rolled in. May be available in USDA-eligible areas for eligible buyers, depending on current program availability and guidelines. Ask about current availability.
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. Under HUD guidelines, borrowers generally do not need to qualify separately for the added energy improvement amount.
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. Once renovations are complete, the renovation escrow is closed out.
Combine the purchase price and renovation budget into one estimated monthly payment.
Estimates only. Down payment minimum varies by program (FHA 3.5% at 580+ credit, VA/USDA 0% for eligible borrowers, HomeStyle as little as 3% on a one-unit primary with more required for second homes and 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, subject to program guidelines. FHA 203(k) is limited to primary residences. Investment property down payment and credit requirements are typically higher. Investors flipping a property may also look at business-purpose fix and flip loans.
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. With PRMG HomeStyle, a hired contractor is required and do-it-yourself work is not allowed. For FHA 203(k), the lender reviews the contractor's license, insurance, and bid.
Renovation loans commonly take longer than a standard purchase because of the contractor bid review, scope of work documentation, and after-improved appraisal. For the work itself, FHA 203(k) Limited allows up to 9 months, FHA 203(k) Standard up to 12 months, and HomeStyle projects are commonly completed in about 6 months.
It depends on the plan and the program. Adding a separate unit, such as converting a single-family home into a 2 to 4 unit property, is not eligible under HomeStyle. Ask before planning an ADU so we can review your specific project, the program options, and local zoning.
Plan on no. With PRMG HomeStyle, a hired contractor is required and do-it-yourself work is not eligible. FHA 203(k) projects are also built around a contractor whose license, insurance, and bid the lender reviews. If you were hoping to do some work yourself, ask before you make an offer.
FHA 203(k) does not finance luxury items, such as a new swimming pool, or similar non-essential amenities. If your plans include items like that, HomeStyle may be an option, subject to program guidelines.
Yes, for eligible borrowers. FHA 203(k) and HomeStyle can be used with a refinance (see renovation refinance). 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.
In most cases, yes. Payments are based on the full loan amount, including the escrowed renovation budget. On FHA 203(k) Standard, up to 6 months of payments may be financed if the home is uninhabitable during the work. 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.
Certified Mortgage Advisor and Branch Manager at PRMG Mortgage (NMLS #75243). 28 years in mortgage lending. Specializes in FHA, VA, conventional, DPA, jumbo, Non-QM, renovation, and construction financing for buyers and investors in Sacramento, New Jersey, and nationwide. PRMG is licensed in 49 states, excluding New York. Three-time Gold Award winner for Highly Reviewed Mortgage Team in Sacramento (2023, 2024, 2025). NMLS #225375.
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Source materials are publicly available agency and government resources. Program availability and guidelines may change. Always verify current guidelines with the agency or with Ken Clark Jr. before relying on them for a transaction.
Sources consulted: HUD.gov, VA Home Loans, CalHFA, GSFA, NJHMFA, Freddie Mac DPA One, Down Payment Resource, NMLS Consumer Access.
All program references on this page are based on publicly available agency guidelines as of the last-reviewed date. Program availability and guidelines may change. PRMG must be approved for a program before originating it. Final eligibility depends on credit, income, assets, property, occupancy, and underwriting.