Renovation Mortgage Navigator
Finance the home and eligible renovation work together. Start by separating FHA 203(k), Fannie Mae HomeStyle, Freddie Mac CHOICERenovation and smaller-project options.
Start with the project, not the product
Is the work structural or non-structural? How large is the budget? Will the home be habitable? Is this a purchase or refinance? Those answers narrow the financing path.
FHA 203(k)
HUD offers Limited 203(k) for eligible smaller/non-structural projects and Standard 203(k) for major rehabilitation and structural work.
Conventional renovation
Fannie Mae HomeStyle Renovation and Freddie Mac CHOICERenovation can combine eligible acquisition/refinance financing and renovation costs.
Smaller projects
Fannie Mae HomeStyle Refresh and Freddie Mac CHOICEReno eXPress are distinct smaller-scale improvement paths. Do not treat every repair escrow as a full renovation mortgage.
Start with scope, not the loan name
Write down every proposed improvement, identify structural work, estimate cost, determine whether the home can be occupied, and estimate as-completed value. Those facts narrow the product.
Pre-approval renovation checklist
Prepare a preliminary scope, rough contractor pricing, structural/nonstructural classification, expected permit needs, occupancy plan during construction, target completion time and likely as-completed value. Identify condo, manufactured-home, ADU, mixed-use or multi-unit characteristics before ordering the appraisal.
Execution checklist
Confirm the lender actively originates the selected renovation product; contractor accepts draw-based payment; required consultant is available; bid matches appraisal scope; permits can be obtained; contingency/change-order process is understood; and borrower has enough non-escrow liquidity for costs the program will not finance.
Renovation Mortgage Expert Library
Smaller conventional projects
Worked triage: $60,000 remodel does not automatically mean Limited 203(k)
A buyer wants $60,000 of work, which is below HUD's current $75,000 Limited cap. But the plan includes removing a load-bearing wall and building a structural addition. The dollar amount alone does not make it Limited: Limited is for minor remodeling and nonstructural repairs. The project should be analyzed under Standard 203(k) or an eligible conventional renovation product. This is exactly why MortgageDadOf3 starts with scope rather than loan name.
Primary sources to verify
- HUD — FHA 203(k)
- Fannie Mae — HomeStyle Renovation Eligibility
- Fannie Mae — HomeStyle Costs & Escrows
- Fannie Mae — HomeStyle Refresh
- Freddie Mac — CHOICERenovation
- Freddie Mac — CHOICEReno eXPress
Last reviewed September 15, 2026.