Fannie Mae HomeStyle & Freddie Mac CHOICERenovation

Conventional renovation loans that let you roll the purchase (or refinance) and renovation costs into a single loan. They can be used for primary, secondary, or investment properties. Great for buyers looking to add value or customize without needing to pay for renovations out of pocket. Loan amounts are based on the after-renovation value and down payments can be as low as 3% for first-time buyers.

FHA 203(k) Loans

Government-backed renovation loans that combine purchase/refinance and rehab into one mortgage. Easier to qualify for than conventional options, especially for first-time buyers or those with lower credit scores. Comes in two flavors—Limited (for cosmetic repairs under $75K) and Standard (for larger projects). Can’t be used for luxury upgrades like pools or saunas, but covers most functional improvements.

Hard Money Loans:

Asset-based loans with higher rates, used when speed or property condition makes traditional financing tough. Often used by fix-and-flip investors or for distressed properties.

Construction Loans:

Short-term loans used to fund ground-up builds or major renovations. Best for developers or investors with a clear project plan and exit strategy.