Short answerYes, with a renovation loan. The FHA 203(k) and Fannie Mae HomeStyle programs let you borrow for the purchase and repairs in one loan, based on the value after the work is done. They take longer, require contractor bids, and the lender releases repair money in stages. They can fit older homes that would not pass an appraisal as is.
The main options
| Loan | Good for | Notes |
|---|---|---|
| FHA 203(k) limited | Smaller, non structural repairs | Lower repair cap; simpler |
| FHA 203(k) standard | Larger and structural work | Requires a 203(k) consultant |
| Fannie Mae HomeStyle | Conventional buyers | Can include upgrades as well as repairs |
| VA renovation | Eligible veterans | Fewer lenders offer it |
Plan for
- Contractor bids before closing.
- A longer closing timeline.
- A contingency reserve for surprises.
I own Wardmark Property Operations LLC, a contracting company. You are always free to use any contractor you choose.
Loan rules and rates change and depend on your file. Your lender has the final word on what you qualify for.
Frequently asked questions
Can I do the work myself with a 203(k)?
Generally the program expects licensed contractors. Ask your lender.
Is a renovation loan more expensive?
Rates and fees can be higher, and the process takes longer.
Keep reading
Looking at a house and not sure what you are getting into?
Ask for a free Before You Offer review. Send me the listing. I look over the photos, the seller's disclosure, and recent sales, then flag likely condition issues and planning cost ranges before you write an offer.
Request a Before You Offer reviewOr call or text (812) 525-5489, or email john@yourpropertynegotiator.com.
The Before You Offer review is a REALTOR® and contractor review of the listing, not a home inspection. It is for buyers who are not already working with an agent. If you have an agent, please bring these questions to your agent.
Sources
Written by John Long, REALTOR®, 1 Percent Lists Indiana Real Estate. Working contractor who has priced hundreds of home inspection repair requests. Former labor relations negotiator for a major manufacturer and U.S. Coast Guard veteran.
John Long, REALTOR® · 1 Percent Lists Indiana Real Estate · (812) 525-5489 · yourpropertynegotiator.com
This page is general information, not a substitute for a professional home inspection, and not legal, tax, insurance, or lending advice. Ask a real estate attorney about contracts and disclosure, a CPA about taxes, your lender about loan rules, and a licensed inspector or tradesperson about your house. Nothing here guarantees a sale price, net proceeds, repair cost, payment, timeline, appraisal, inspection result, or loan approval. Cost figures are planning estimates, not bids. I own Wardmark Property Operations LLC, a contracting company. You are always free to use any contractor you choose.