What Is a Renovation Loan?

A renovation loan allows you to finance both the purchase of a home and the cost of improvements in a single mortgage. It’s a smart solution for buyers who want to turn a fixer-upper into their dream home, or for current homeowners who want to refinance and renovate at the same time.

FHA 203(k) Loan Options

Standard 203(k) Loan

  • Covers major renovations and structural repairs
  • Can be used for fire or flood damage, foundation repairs, or room additions
  • Combines purchase price and renovation costs into one mortgage

Streamline 203(k) Loan

  • Designed for smaller projects under $31,500
  • Covers non-structural repairs and updates
  • Perfect for modernizations like painting, roofing, flooring, or appliance upgrades

Benefits of a Renovation Loan

  • One loan, one payment – combine home purchase and upgrades
  • Low down payment – as little as 3.5% with qualifying credit
  • Flexible repairs – from structural fixes to cosmetic updates
  • Boost your home’s value – improvements are factored into the appraised value
  • Government-backed security – insured by the FHA

How It Works

When you close on a 203(k) loan, funds for repairs are held in escrow. As your licensed contractor meets renovation milestones, funds are released to cover the work. This ensures improvements are completed on time and on budget.

Why Work With Tim and Liz?

Tim and Liz Serratt specialize in helping buyers and homeowners across Vero Beach understand their financing options. With their guidance, you can confidently buy and improve a property without juggling multiple loans.

Start Your Renovation Journey Today

Whether you’re buying a fixer-upper or updating your current home, a renovation loan can make it possible.