Conventional Renovation Loans
Conventional Renovation Loans
Allow you to finance both the purchase (or refinance) of a home and its renovations in a single mortgage, with the loan amount often based on the property’s estimated value after improvements are complete. Financing up to conventional loan limit ($832,750 in NC)
Reasons to choose Conventional Renovation Loans
Combines purchase/refinance and renovation costs into a single conventional mortgage with one monthly payment, avoiding separate loans, multiple closings, or high-interest options like HELOCs, personal loans, or credit cards —so you can tackle fixer-uppers without draining your savings.
Guidelines: Conventional Renovation Loans
To qualify for Conventional Renovation Loans, you will need:
Apply for a conventional renovation loan
The two main programs are:
Fannie Mae HomeStyle® Renovation — Flexible for a wide range of improvements, including luxury items like pools or additions.
Freddie Mac CHOICERenovation® — Similar features, with options for streamlined versions (e.g., CHOICERenovation eXPress for smaller projects).
Renovation funds can be used for primary residences, second homes and investment properties (1-unit)
No, however, you are able to obtain a 3% seller credit, which may be sufficient to cover substantially all of your closing costs. Closing cost credits can be up to 6% with a 10% down payment
On a typical conventional purchase or refinance, Scout Advisors can close in as little as 14 days. With a renovation loan, we suggest a minimum of 45 days (60 days is ideal) to allow sufficient time to shop contractors and to obtain renovation approval.
Typically work should be completed within 12 months
Eligible improvements are for the healthy & safety, kitchens, baths, additions, etc, but can also be used for luxury upgrades (kitchens, bath remodels), accessory dwelling units, pools, landscaping and structural upgrades.
Generally no—must use licensed contractors (FHA-approved where required). Limited DIY may be allowed for very minor items in some cases, but most work requires professionals. No full owner-builder labor credit for the loan
Yes (for Fannie Mae HomeStyle), no habitability requirement exists. You can finance up to 6 months of principal, interest, taxes, and insurance (PITI) if the home isn't livable during renovations.
