Finance the purchase and the renovation, in one loan
Finance the purchase and the improvements in a single loan, based on what the home will be worth after the work — not what it looks like today. We explain FHA 203(k) and conventional HomeStyle side by side so you can pick the program that fits.
Who it fits
Buyers eyeing a fixer-upper
Finance the purchase price and the cost of repairs together, rather than needing cash for both.
Homeowners planning upgrades
Both programs can also be used to refinance and fund improvements to a home you already own.
Buyers who want simplicity
One loan, one closing, one monthly payment — instead of a mortgage plus a separate renovation loan.
FHA 203(k) vs. HomeStyle, side by side
A structural comparison to help you understand which program fits.
| Item | FHA 203(k) | HomeStyle (conventional) |
|---|---|---|
| Minimum down payment | 3.5% | 5% |
| Mortgage insurance | FHA MIP applies | PMI, removable at 20% equity |
| Eligible properties | Primary residence, 1-4 units | Primary, second home, investment |
Illustration only. Actual eligible repairs, contractor requirements, and program details vary by lender and property.
Where renovation loans help
- Purchase and renovation costs combined into one loan
- Based on the home's after-improved value
- One closing instead of a mortgage plus a separate loan
- Can also refinance and fund upgrades to a current home
What to weigh
- More documentation than a standard purchase loan
- Contractor bids and inspections are part of underwriting
- Draw process for releasing renovation funds
- Timeline is longer than a typical purchase closing
Common questions
What's the difference between FHA 203(k) and HomeStyle?
FHA 203(k) is government-backed with a 3.5% minimum down payment and FHA mortgage insurance. HomeStyle is a conventional option with a 5% minimum down payment and removable PMI.
What repairs are eligible?
Both programs cover a wide range of structural and cosmetic improvements — we'll review your contractor's scope of work against program guidelines.
Can I use this to renovate a home I already own?
Yes — both FHA 203(k) and HomeStyle can be used as a refinance to fund improvements on your current home.
Do I need a licensed contractor?
Yes, both programs require a qualified, licensed contractor and a detailed bid before the loan can close.
See if a renovation loan fits your project
No cost, no obligation — we'll compare FHA 203(k) and HomeStyle for your scenario.