Home Renovation Mortgages
The FHA 203(k) & FannieMae HomeStyle®
Turn your house into your dream home
Home Renovation
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You just located an amazing deal!

The location is great, it`s affordable, and with improvements this house could become the home you have always wanted. There`s just one problem...

Most lenders will not loan you the money to purchase a home that needs repair... unless, of course, the repairs are completed prior to closing. In other words, prior to when you actually own the home!??

Even if the home was in decent enough shape to purchase in its present condition, do you have the extra funds - or desire to use your own funds - to make the necessary repairs and improvements after closing?

This is a common issue facing today`s home buyers, especially first-time buyers, due to our nations older housing stock that typically lacks the updates and amenities buyers are looking for in a home.

…a special Thank You to you and your 203(k) team for guiding me through this process. I can’t wait to begin renovations!
- Michael C., Maplewood

FREE Home Renovation Rate Quote

A home renovation mortgage is ideal solution for home buyers, or homeowners, that are looking to make improvements to a property after closing with minimal down payment or equity.


A home renovation mortgage, otherwise known as the FannieMae Home Style® or FHA 203(k) loan, provides borrowers with the ability to purchase, or refinance, a home and include the necessary funds for renovation, repair and/or modernization all within the loan.

Unlike a traditional mortgage where the loan amount is based off the current market value, a home renovation mortgage is based off the "after improved" value of the home, allowing the home appraiser to determine what the value will be once the improvements are done.

And because a home renovation mortgage is a simple one-time closing just like any other purchase or refinance, you eliminate the need for a second mortgage, construction loan, home equity line of credit, or other, more costly methods of financing.

To Illustrate; Let's assume the purchase price of a house is $300,000 with the improvements estimated at $100,000 and the appraiser determines the after improved value to be $400,000, then the down payment and the mortgage will be based off the $400,000 after improved value.

For a Conventional FannieMae HomeStyle® loan, the minimum down payment for an owner occupied single family home is 3%. For an FHA 203(k) loan, the down payment can be as little as 3.5% on a 1-4 unit home. Using this example, with only $12,000 down (3% of $400,000), a home buyer can purchase this single family home for $300,000 and set aside $100,000 after closing to the necessary improvements!




  • One loan to purchase (or refinance) a home and make renovations, upgrades, or repairs.
  • Conventional or FHA 203(k) loan options.
  • 30 or 15 years fixed rate.
  • Includes single-family, one-to-four units, or condominiums.
  • Easy way to obtain the funds needed to turn a dated home into your dream home after closing.
  • Finance renovation costs in one loan. No need for costly second mortgages or construction loans
  • Low down payment of 3% to 3.5% on single and multi-family owner occupied homes.
  • Investor purchase available for single homes with only 25% down!
  • Single Family purchase + renovation cost to $760,000 with only 5% down! Higher amounts available on Multi-Family

Find out which home renovation mortgage is right for you.

Call or email a local American United Lending Professional today.

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