Renovation Loans

HomeStyle Renovation


The HomeStyle Renovation mortgage is a single-close loan that let’s you buy the home that may be in need of repairs. It is also possible to refinance the mortgage on an existing home and include the funds needed for repairs into the new mortgage. The loan amount for the HomeStyle Renovation mortgage is based on the “as-completed” value of the home rather than what the home is currently worth.

What is allowed?

There are very few limits on the type of improvements that can be made with the HomeStyle Renovation loan. The only requirements are that the improvements must permanently be attached to the property and must add value to the property. Some simple examples of improvements that qualify include roof repairs/improvements, in-ground pools, decks, landscaping, fences, kitchen upgrades, basement build-outs, master bedroom additions and/or freshening up a tired master bathroom.

Other Highlights:

  • Does Not Have To Be A Fannie Mae Owned Property
  • Owner Occupied, Second Home, Non-Owner Occupied
  • Purchase program with as little as 5% down
  • Refinancing up to 95% LTV
  • Renovations Must Be Completed By a Licensed Contractor
  • Renovations Must Be Completed In 6 Months
  • Renovation Costs May Not Exceed 50% Of The “As Completed” Value

203(k) Home Loans

What is it?

The FHA 203(k) loan lets you purchase or refinance and rehabilitate a property with one loan closing. The projected rehabilitation costs are held in an escrow account and disbursed as work is completed and inspected. The loan amount is based on the lower of the projected market value following repairs or purchase price plus renovation costs.

What is allowed?

Properties that are sold “as-is” often would not qualify for a standard FHA loan, However, 203(k) loans are designed to improve, update and modernize the home. You can purchase a home that does not require repairs and finance the cost of “modernization” or cosmetic repairs. The loan allows for 1-2 unit dwellings, including condominiums.


Up to 110% (100% on condominiums) of the after improved value of the home may be used as a basis for mortgage calculations. (The appropriate LTV factor is then applied). Up to six months of PITI (principal, interest, tax, and insurance) payments can be financed to assist those who would otherwise be required to make double-housing payments. Consultant will determine the number of months house will be uninhabitable for financing of payments.


Buyers who purchased a property with cash can use the 203(k) program to complete repairs/modernization and replenish funds used at the time of purchase. Mortgage must close within 6 months of cash purchase. The loan can be used for complete reconstruction of a home on its original foundation.


Properties in “below-average” condition can be upgraded through repairs and maintenance (i.e., new roof, fix broken windows, and lead paint abatement). Increase square footage by building an addition, building a second floor or finishing a basement or attic space.

If you're interested in a renovation loan in Montana, Mann Mortgage can help you make it happen. Please contact us today or apply online in less than 10 minutes using the secure online application below.

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