You deserve to love where you live. Whether you love your current location or you’ve found a new home that could use some work, taking out a renovation loan might be the best option for you.

What Is a Renovation Loan?

From small-scale projects to a full gut rehab, this type of loan allows you to buy or refinance a home and secure financing for renovations in a single loan.¹ Whether you want to renovate your current home or you’ve found the perfect fixer-upper, save yourself both time and money with one loan—and only one set of closing costs—so you can get started on your project sooner.

Types of Renovation Loans

There are two major types of renovation loans: the Federal Housing Administration (FHA) Standard 203(k) loan and the FHA Limited 203(k) loan.² Both options allow you to take out a single loan that finances your renovation project as well as the purchase or refinancing of a home.

• Standard: This type of 203(k) loan covers major renovation projects, including roof repairs, home additions, or large remodeling projects with a minimum value of $5,000.
• Limited: This type of 203(k) loan is designed for smaller projects, such as plumbing or electrical repairs, painting or minor renovations up to $35,000.

Benefits of a Renovation Loan

• Save time. Rather than getting financing for renovations separately from a new or refinanced mortgage, renovation loans only require you to apply for a single loan. This way you only navigate the process once.
• Save money. Save money. Securing one loan means only having to pay for a single set of closing costs. This allows you to put more of your money into your home renovation project.
• Have more choice in where you live. If you have your heart set on a certain location, you might find that homes in that area aren’t what you had in mind. With a renovation loan, you can have the best of both worlds and turn any home into the one you’ve always wanted. 
• Live in the home you truly want. Rather than house hunting for your dream home, make where you live uniquely yours by customizing it to your desired specifications.

When finding the perfect home in the ideal location proves difficult, renovating might be the best option to feel most at home. Save time, energy, and money by securing financing for both a renovation project and the purchase or refinance of your home, all in one loan.

Are you ready to make your dream home a reality? Loan experts at Wintrust Mortgage are here to help you navigate all your renovation options.