Buy the home. Build the vision.
Renovation loans let you finance the purchase and the improvements together, so you're not choosing between the home you can afford and the home you actually want.
A lot of buyers scroll past the fixer-upper. That could be your opportunity. With the right renovation loan, the purchase price and the cost of improvements roll into a single mortgage, one loan, one payment, one closing. You get the home at today's price and the kitchen, the bathroom, or the addition you've been picturing.
What's the difference between renovation loan programs?
Not all renovation loans work the same way. The two most common programs, FHA 203(k) and Fannie Mae HomeStyle, serve different borrowers in different situations. Here's a quick look at both.
FHA 203(k) Renovation Loan
If you're buying a home that needs real work and your down payment isn't huge, the 203(k) program was built for you. It's FHA-backed, which means lower credit score thresholds and a down payment as low as 3.5%, and it covers everything from structural repairs to cosmetic updates.
Learn MoreHomeStyle Renovation Loans
If you have stronger credit and want more flexibility on the type of property or the scope of improvements, HomeStyle is worth a close look. It works on primary homes, second homes, and investment properties, and there's no minimum repair amount required.
Learn MoreIs a renovation loan right for you?
Renovation loans work best when the cost of improvements is baked into the financing from the start. If you're already in a home and looking to fund a remodel separately, a cash-out refinance might be the better conversation. Either way, a Castle & Cooke Mortgage loan officer can help you run the numbers and figure out which path makes more sense for your situation.
Additional Reading
Ready to talk renovation?
Tell us about the home and what you're picturing.
We'll help you figure out which program fits you the best and go over all your options.