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Repair.  Renovate.  Remodel.     



Finance or Refinance your home and improvements with a renovation loan for as little as 0% down (VA),  3.5% (FHA) or 5% (Conventional)

Finding the cash to pay for repairs and renovations can be a big obstacle for both buyers and homeowners alike.  You want to purchase that perfect fixer upper or renovate your family's home, but there is not enough cash for a mortgage and the repairs.  Lenders aren't going to approve a loan for more than the home is currently worth and homeowners who don't yet have equity in their home, are unable to get a home equity loan.  In both scenarios, there is a solution - a Rehab loan.  It might just be the perfect tool to help turn that fixer upper into the home of your dreams.   


A rehab, or renovation loan, enables home buyers (and home owners) to finance (or refinance) both the purchase and the renovation with a single loan.  This presents borrowers with a streamlined financing option and eliminates the need, and hassle, of securing a second loan for the repairs.  A rehab loan can also save you money in the long run.  They feature competitive rates, which are often lower than a personal loan or home equity line of credit.

There are several types of rehab loans.  Each achieves the same goal - providing homeowners a mortgage and access to money for improvements - but comes with different requirements and best serves different types of buyers.  If you have used conventional loans in the past, the HomeStyle renovation loan, a type of conventional loan, may be a good fit.  The FHA and the VA loan programs create the opportunity for their borrowers to purchase a home in need of repairs, which previously could only be done by those with cash on hand for improvements.  The experts at Simplicity can analyze and explain the options available so you can make an informed decision as to which loan is the most beneficial for your home purchase or renovation.  

Rehab Loan Types
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FHA 203K


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Conventional.  Flexible.  Affordable.​


Updating a kitchen?  Adding a bathroom?  Replacing the roof?  The HomeStyle renovation loan can be used on any type of home renovation project.  It combines both the renovation costs and the purchase or refinance into one conventional loan.   For additional borrower benefits, this loan can be combined with other Fannie Mae offerings such as HomeReady or HomeStyle energy.  ​

  • 620+ FICO - DTI per DU​

  • 0/0CC 95% LTV Single Family Residence (to 97% LTV w/restrictions)

  • 90% LTV Single Family Residence - 2nd Home Purchase

  • 85% LTV Investment Purchase (Single Family Residence Only)

  • 75% Investment R&T Refi - Single Family Residence Only

  • Conforming and High Balance

  • Allows up front draws up to 50% of material costs

  • Includes contingency up to 15%

  • Contractors must be licensed only when required by state law

FHA 203K


Expand your home search to homes in need of some TLC.

An FHA rehab loan is a government backed loan that is divided into two categories, Standard and Limited.  These loans require a licensed contractor, a bit of planning & paperwork on the front end, and oversight throughout the process, but are excellent options for FHA borrowers wanting to purchase a home in need of some repairs.

An FHA Limited 203K loan (formerly known as Streamline) is designed specifically for homes that need some repairs or upgrades, but is intended for homes where the remodel/repair/updates are under $35,000.  Only certain projects are eligible, such as minor kitchen remodeling (non-structural), pool repairs, painting, repair/replacement of appliances, windows, doors or roof, improvement for accessibility for persons with disabilities and more.   

An FHA 203K Standard (or Consultant) loan is reserved for homes that require at least $5,000 in repairs and may exceed $35,000 of repairs​​.  This loan allows for more extensive work and therefore it requires more supervision throughout the process.  A 203K consultant will inspect the property to determine the repairs necessary to bring the property up to FHA minimum standards and evaluate your renovation plans.  Similar to the FHA limited loan, only certain repair/renovation projects are eligible.  Repairs can be more extensive with the Standard loan and include kitchen and bathroom remodels, major landscaping/decks/fencing, new appliances, new flooring/tile, room additions, swimming pool repair, painting and other improvements that are a permanent part of the real estate.  Adding tennis courts, swimming pools, gazebos, outdoor fireplace, additions for commercial use, murals or other types of luxury items are not allowed. 

  • 600+ FICO DTI per DU (550-599 - 31/43 Max DTI)

  • 5K Min for Standard, No min for Limited

  • 0/0CC 96.5% LTV 1-4 Units, Condo, PUD

  • 0/0CC 97.75% LV R&T

  • Refi 1-4 Units, Condo, PUD

  • 0/0CC550-579 has Max 90% LTV

  • Manufactured Homes are eligible 

VA Renovation


Take advantage of your VA loan benefit and the perfect fixer upper.

In 2018, the VA renovation loan was implemented.  This loan creates an opportunity for Veterans to purchase an older home in need or repairs (or make repairs to their current home), with all the benefits of a VA loan.  The housing inventory is aging and there are many great homes on the market in need of repair or remodeling.  Previously there was no way to use a VA loan in these situations unless the veteran had the cash to make the repairs.  The VA renovation loan provides a solution for Veterans to purchase a home and fund approved repairs or renovations without forgoing the benefits of a VA Loan.  If you currently own a home and have a VA loan, refinancing with a VA renovation loan can be used to pay for improvements to your existing home (such as repairs to the roof, floor, electrical, plumbing, foundation or HVAC).  This loan does have some restrictions as to what type of renovations can be completed.  It is intended to be used to repair a property to a clean, habitable & functional condition, it is not designed to finance your dream home remodel. 


A VA renovation loan is actually a second loan but it works differently than a traditional VA supplemental loan.  Instead of having two loans, the VA rehab loan is rolled together with the original purchase loan, so that you only have one mortgage rate and payment.   

  • DTI per DU (550-599 - 31/43 Max DTI)

  • 100 LTV 0/0CC Purchae Only

  • 1 unit peroperties, Condo, PUD

  • Manufactured Homes are eligible

  • Up to 35K available for Renovations/Repairs (no minimum)

  • 90 days to complete the renovations


Sweeten the deal.  Keep cash in your pocket.  Make it your own.       

Up to $5,000 can be added into the mortgage transaction to cover repairs that will be completed within 14 days of the loan disbursement.  These repairs cannot impact the habitability or safety of the property. 

  • Escrow holdback for up to $5,000 in repairs (subject to underwriters approval)

  • 1.5 times the amount of the repairs is held in escrow

  • Escrow holdback can be funded by the buyer or the seller

  • Available on FHA, VA and conventional loans

  • Repairs to be completed within 14 days of loan disbursement

Home Fixer
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