One closing instead of two
Single set of closing costs. No second loan, no separate construction note, no HELOC application after the fact.
Renovation loans for Texas buyers and homeowners.
Buy a fixer + finance the rehab in one loan, or refinance your existing home and roll renovation costs in. FHA 203(k), Fannie HomeStyle, and VA renovation.
- Buy + renovate in one loan
- Refi + renovate options
- FHA 203(k) and Fannie HomeStyle
One loan for the purchase and the renovation.
Renovation loans roll the purchase (or refinance) of a property and the cost of improvements into a single mortgage. The two main flavors are FHA 203(k) — government-insured, with FICO down to 580 and 3.5% down — and Fannie Mae HomeStyle, the conventional version with FICO 620+ and more flexibility on luxury or non-essential improvements. The loan amount is based on the as-completed value of the home (purchase price plus renovation budget), so you don’t need separate cash for the rehab.
How a renovation loan goes from contract to keys.
- 01
Find the property
Identify a home that needs work — distressed listing, dated finishes, missing features. We confirm the property is eligible for renovation financing under your chosen program.
- 02
Get bids from a licensed contractor
A licensed, insured general contractor walks the property and prepares a detailed scope and bid. The bid is the basis for the renovation portion of the loan.
- 03
Lender appraises the future value
The appraiser values the home as-completed — assuming the renovation work is done — using the contractor scope and comparable improved properties.
- 04
Single loan closes
One closing funds the purchase price plus renovation budget. Title transfers, you become the owner, and renovation funds go into a controlled escrow account.
- 05
Funds escrowed for renovation
Renovation money sits in escrow with the lender. Contractor begins work according to the agreed scope and timeline.
- 06
Draws as work completes
Funds release in scheduled draws as the contractor finishes phases of work. Each draw triggers an inspection. Final draw releases when the rehab is complete and signed off.
Built for Texas families ready to make a house their home.
A great house in the right neighborhood that needs work is often a better value than a turn-key listing two streets over. The challenge is paying for the renovation — separate construction financing or HELOCs add cost and complexity. Renovation loans solve that with a single closing and a single rate covering both the purchase and the rehab. We have closed 203(k) and HomeStyle loans across DFW for first-time buyers tackling distressed properties, move-up buyers reshaping a 1990s floor plan, and existing homeowners refinancing to fund a major remodel.
Renovation financing is the right tool when:
- You are buying a property that needs work — cosmetic or structural
- You are bidding on a distressed property (foreclosure, REO, short sale)
- You are adding a room, expanding the footprint, or adding accessibility features
- You are planning a major kitchen or bath remodel
- You are refinancing your existing home and want to fold renovation costs into the new loan
Why a renovation loan beats two separate transactions.
Single rate for purchase + rehab
The renovation amount is financed at your mortgage rate, not at HELOC or personal-loan rates. That can be a meaningful interest savings on larger rehabs.
Roll closing costs in
Standard closing costs and certain renovation contingencies can be financed into the loan, minimizing cash to close.
FHA 203(k) for first-time buyers
3.5% down with FICO 580+. Lets first-time buyers compete on properties that turn-key shoppers skip — and reshape them into the home they want.
HomeStyle for higher-end remodels
Fannie Mae HomeStyle (conventional, 620+ FICO) is more flexible on luxury improvements like pools, outdoor kitchens, and high-end finishes that 203(k) restricts.
Loan amount based on after-renovation value
Appraisal values the home as-completed, so the loan can support a larger renovation budget than the as-is value would otherwise allow.
1
Loan for purchase + rehab
Renovation loan questions, answered.
What is the difference between FHA 203(k) and Fannie HomeStyle?
FHA 203(k) is government-insured, allows FICO down to 580 with 3.5% down, and is generally more conservative on what improvements qualify (no luxury features). Fannie HomeStyle is conventional, requires 620+ FICO and 5% down, and is more flexible on the type of improvements allowed — including pools, detached structures, and luxury finishes. We model both side by side based on your credit, down payment, and project scope.
Can I do the work myself?
Generally no. Both 203(k) and HomeStyle require a licensed, insured general contractor to perform the work, with very limited exceptions for skilled-trade homeowners (and even then, lender approval is case-by-case). The contractor requirement protects the loan because the lender is funding work based on a controlled draw schedule and inspections.
How are draws scheduled?
Draws are scheduled by phase of work — typically demo + framing, mechanical / electrical / plumbing rough-in, drywall and finish carpentry, and final completion. Each draw requires an inspection by the lender (or its third-party inspector) confirming the work is done before funds release. Most rehabs run 3–5 draws across a 3–6 month build period.
What renovations qualify?
Both programs cover a wide range: structural repairs, additions, kitchen and bath remodels, roofing, HVAC, plumbing, electrical, accessibility modifications, energy-efficient upgrades, and cosmetic finishes. 203(k) is stricter on luxury items; HomeStyle is more permissive. We confirm scope eligibility against the program before you sign a contractor bid.
Are there limits on luxury features?
FHA 203(k) generally restricts pools, outdoor kitchens, gazebos, and similar non-essential features. HomeStyle allows them, including pools, patios, and detached structures. If your project involves significant luxury features, HomeStyle is usually the right path.
Can I use this for an investment property?
203(k) is owner-occupied only. HomeStyle does allow investment properties (with higher down payment and tighter pricing) and second homes. For pure-investor rehab financing, fix-and-flip or DSCR-rehab products are usually a better fit — we can route you there if needed.
Want to buy + renovate in one loan?
Renovation loan requirements at a glance.
- Licensed and insured general contractor (typically required; very limited self-perform exceptions)
- Detailed scope of work and contractor bid
- Lender-approved appraiser estimates the after-renovation value
- FHA 203(k): FICO 580+ and 3.5% down — HomeStyle: FICO 620+ and 5% down
- Owner-occupied for 203(k); HomeStyle allows second homes and investment with adjustments
- Texas property
- Reasonable rehab timeline (typically 6–12 months from closing)
- Contingency reserve included in the budget for unexpected costs
FHA 203(k) Limited vs Standard vs Fannie HomeStyle vs VA Renovation.
| Min FICO | Min down | Repair scope | Best for | |
|---|---|---|---|---|
| FHA 203(k) Limited | 580 | 3.5% | Up to $75,000 in non-structural repairs | Cosmetic and minor system updates |
| FHA 203(k) Standard | 580 | 3.5% | No repair cap; structural OK | Major rehabs including additions and structural work |
| Fannie HomeStyle | 620 | 5% | Broad — luxury features allowed | Higher-end remodels and second-home / investment rehabs |
| VA Renovation | 580–620 (lender) | 0% | Repairs to make habitable + improvements | Veterans and active-duty buying or refinancing a property needing work |
Ready to move on a Renovation Loan?
Get a soft-pull pre-approval in minutes. No credit hit, no surprises.
Other ways we close
FHA Loans
Standard FHA financing for properties that don’t need rehab — 3.5% down at 580 FICO.
Learn moreConventional Loans
Standard conventional financing for completed homes — pairs naturally with HomeStyle if rehab isn’t needed.
Learn moreNew Construction
OTC and TTC construction financing when you’re building from the ground up rather than renovating.
Learn more