The most money and lowest monthly payment for your renovation

Borrow up to 90% of your future home value with a Renofi Renovation Loan

I WANT TO RENOVATE:

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Home renovation loans use the after renovation value of your home to determine how much you can borrow. This key factor makes them an attractive choice for many homeowners, because it often allows you to borrow more. Read more about how this works here. 

Each type of home renovation loan is best for different types of situations.

There are RenoFi loans, construction loans, Fannie Mae Homestyle loans, and FHA 203k loans. Each has different pros and cons, depending on your project. 

If you know you want to factor in your home’s after renovation value to get a loan for your home remodel, but you’re not sure which loan type might be best, compare the different renovation loan options available in the table below.

Renovation Home Equity LoanSingle-Close Construction To Permanent Loan (CTP)Fannie Mae HomeStyle LoanFHA 203k (Full)Two-Close Construction To Permanent Loan (CTP)Freddie Mac Choice Renovation LoanVA Renovation Loan
Is this a mortgage?YesYesYesYesYesYesYes
1st or 2nd mortgage?2nd1st1st1st1st1st1st
Require refinance of existing mortgage?NoYesYesYesYesYesYes
Typical Interest RateMarketAbove MarketAbove MarketAbove MarketAbove MarketAbove MarketMarket
Loan Limit (Renovation Cost + Mortgage)$500,000Jumbos allowedConforming onlyConforming onlyJumbos allowedConforming onlyConforming only
Loan Term (max)20 years30 years30 years30 years30 years30 years30 years
Credit Score Required630+700+620+580+580+660+620+
Loan to ValueUp to 90%Up to 95%Up to 95%Up to 96.5%Up to 80%Up to 95%Up to 95% (90% if refinancing)
Can be used for building new home?NoYesNoNoYesNoNo
Restrictions on type of improvements?NoNoNoYesNoNoYes

Still not sure which loan option is right for you? Check out What is a Home Renovation Loan to get a more in-depth picture of each loan option.

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