The Federal Housing Administration (FHA) offers loans specifically for renovation. FHA 203(k) funds a primary residence including repairs in one mortgage with a minimum down payment of 3.5%. There are two types of 203(k) loans:
- Standard FHA 203(k)
Allows borrowers the flexibility to finance major rehabilitation that costs a minimum of $5,000 up the county limit.
- Streamline FHA 203(k)
Provides financing for minor renovations and repairs up to $35,000 of your mortgage.
Fannie Mae (FNMA) Home Style allows you to purchase and renovate a primary residence, second home or investment property* with a minimum down payment of 5% in a single mortgage up to the lending limit.