Renovation Home Loan
Home renovations take a lot of planning and decision-making, so we made the financing simple.
One loan pays for the home and all the upgrades.
Whether you want to buy a fixer-upper or update your current home, a renovation loan from Flagstar Bank makes it easy. Instead of separate loans to purchase and repair the property, this two-in-one option covers both with just one set of closing costs and one convenient monthly payment. Our trusted home loan advisors can help you choose the right renovation loan and personalize it for your needs.
FHA 203(k) Standard Loan1
Breathe new life into a damaged or older property. No limit on renovation funds as long as the total loan stays within FHA guidelines.
FHA 203(k) Limited Loan2
Up to $35,000 of renovation funds available for cosmetic updates like flooring, painting, and appliances.
HomeStyle® Renovation Loan3
Pay a fixed interest rate for 15 or 30 years. Any leftover renovation funds pay down the mortgage balance.
Compare renovation loans
FHA 203(k) Standard Loan |
FHA 203(k) Limited Loan |
HomeStyle® Renovation Loan |
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|---|---|---|---|
|
Minimum down payment |
3.5% |
3.5% |
3-5%4 |
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Mortgage amount |
As-completed appraisal value OR total acquisition and renovation costs, whichever is lower |
As-completed appraisal value OR total acquisition and renovation costs, whichever is lower |
As-completed appraisal value OR total acquisition and renovation costs, whichever is lower |
|
Mortgage insurance |
Yes |
Yes |
For down payments less than 20% |
|
Maximum renovation amount |
Total loan must stay within county FHA guidelines |
$35,000 |
Home purchase: 75% of purchase price + renovation costs OR as-complete appraisal value, whichever is lower |
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Allowable repairs |
Structural changes, landscaping, new appliances, and more |
Flooring, painting, kitchen and bath remodel, appliances, and more. Not for major remodel, structural repairs, or landscaping |
Structural changes, landscaping, new appliances, swimming pools, and more |
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Programs for qualified borrowers. All borrowers are subject to credit approval, underwriting approval and product requirements, including: loan to value, credit score limits and other lender terms and conditions. Fees and charges may vary by state and are subject to change without notice. Some restrictions may apply. Not a commitment to lend.
1Purchase or rate-term refinance and rehabilitation of a primary residence. Program terms available may vary based on the state or county in which the financed property is located. Minimum of $5,000 renovation work. Rehabilitation work must be completed within 6 months of closing. Not available in Puerto Rico or the US Virgin Islands. CONSIDERATIONS: Interest on the portion of your loan balance that is greater than the fair market value of the dwelling is not tax deductible for federal income tax purposes. Please consult your tax advisor regarding the deductibility of interest. Important information will be provided to you in the disclosures you receive after we have received your application and the loan documents you are provided at loan closing.
2Purchase or rate/term refinance and renovation of a 1- to 4-Unit primary residence. Program terms available may vary based on the state or county in which the financed property is located. No minimum repair cost required. Maximum repair cost of $35,000. Renovations must be completed within 6 months of closing. Not available in Puerto Rico or the U.S. Virgin Islands. CONSIDERATIONS: Interest on the portion of your loan balance that is greater than the fair market value of the dwelling is not tax deductible for federal income tax purposes. Please consult your tax advisor regarding the deductibility of interest. Important information will be provided to you in the disclosures you receive after we have received your application and the loan documents you are provided at loan closing.
3Purchase renovation or rate/term refinance renovation of a primary residence, second home, or investment property. Full builder third-party contract required. Homeownership education may be required. Not available in Alaska or the U.S. Virgin Islands. Program for qualified borrowers. CONSIDERATIONS: Renovation requires a full builder third-party contract. A loan-to-value ratio above 80% may result in a need for mortgage insurance. If mortgage insurance is required, the amount of your payment will increase. Interest on the portion of your loan balance that is greater than the fair market value of the dwelling is not tax deductible for federal income tax purposes. Homebuyer education may be required. Please consult your tax advisor regarding the deductibility of interest.
4LTV, CLTV, and HCLTV ratios greater than 95% are not permitted for High Balance, ARM, or –non-occupant borrower loans. At least one borrower must be a first-time home buyer.