Home Renovation Loans | OVM Financial - Lending Redefined
Turn an "as-is" into a Gorgeous, Custom Home

Renovation Loans

Quick Facts

  • Escrow for repairs
  • Can be used for HUD properties
  • Up to $35k in repairs and replacements!
  • Wide array of acceptable repairs and replacements

We strive to take the guess work out of renovation loans.  Our products can turn any home into your dream home.  From small cosmetic updating to major projects such as adding square footage or foundation repair, we have a product to help.  Below you will find some answers to questions we are frequently asked but if you don’t find the answer to your question below please do not hesitate to contact us!

The FHA 203k renovation loan program provides funds for both the purchase and renovation of a home packaged into one mortgage loan. Once the purchase of the home is closed, renovation funds are held in escrow to pay for pre-determined renovation work done by approved renovation contractors.

HUD's 203(k) program can help you overcome this obstacle by enabling you to borrow funds for the purchase or refinance of a property plus the cost of making the repairs and improvements in one mortgage. The FHA-insured 203(k) loan is provided through approved lenders nationwide and is available to owners who will occupy the home themselves.

Down payment, credit qualification, loan limits and other requirements are the same as standard FHA loans. Additional guidelines are set forth specific to 203k loans to provide for renovation of the home.

Renovation loans make fixer uppers super easy by providing additional financing for any home repairs or upgrades built into the existing loan. If you’re already a homeowner, don’t worry, these type of loans are available for refinances as well!

Frequently Asked Questions

1Does OVM Financial offer Renovation Loans?
Yes, OVM Financial offers several options to fit your unique needs!
2What are the types of FHA 203k Loans
The Standard 203k is intended for more complicated projects that involve structural changes, such as room additions, exterior grading and landscaping, or renovation that would prohibit you from occupying the residence. A Standard 203k is also used if your project requires engineering or architectural drawings and inspections. The Streamlined 203k is designed for less extensive improvements and for projects that will not exceed a total of $35,000 in renovation and related expenses. This version does not require the use of a consultant, architect, and engineer or as many inspections as the Standard 203k. As a result, when applicable, the Streamlined 203k generally becomes the simpler, less costly option. Your OVM Financial 203k Specialist™ and your FHA approved lender will help you determine which loan is the best choice to meet your needs.
3Is the 203k program allowed for use by investors?
A 203k loan can be used only by owner occupants, local governments or eligible non-profits. However, an owner occupant can use a 203k loan to purchase and renovate up to a 4-unit building as well as multi-use building in conformance with certain guidelines. Investors have the amazing opportunity to take advantage of the Fannie Mae HomeStyle® Renovation Loan. Please contact your Mortgage Loan Officer for more details!
4Can a 203k be used to purchase a HUD-owned property?
A 203k loan can be used to purchase a HUD-owned property that is determined by HUD to be eligible for a 203k.
5How much time will I have to complete the renovations?
Generally, with a renovation loan, the repairs should take place no later than 30 days after the home is purchased and must be completed within 140 days from the date they begin.
6Can an Energy Efficient Mortgage (EEM) be used in conjunction with the 203k?
Yes – the FHA allows the use of an EEM, which provides funds beyond the FHA loan limits and the buyers approved loan amount for improvements that increase the energy efficiency and lower the utility costs of the home. An energy audit must be conducted by an approved home energy rater to assure that the energy savings over the useful life of the improvements will exceed their costs. The total amount of an EEM mortgage can be up to 5% of the value of the property.
7What improvements are eligible under the Streamlined 203k?
The Streamlined 203k program is intended to facilitate uncomplicated rehabilitation and/or improvements to a home for which plans, consultants, engineers and/or architects are not required. This program allows discretionary improvements and/or repairs shown below: Repair/Replacement of roofs, gutters and downspouts Repair/Replacement/upgrade of existing HVAC systems Repair/Replacement/upgrade of plumbing and electrical systems Repair/Replacement of flooring Minor remodeling, such as kitchens, which does not involve structural repairs Painting, both exterior and interior Weatherization, including storm windows and doors, insulation, weather stripping, etc. Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens Accessibility improvements for persons with disabilities Lead-based paint stabilization or abatement of lead-based paint hazards Repair/replace/add exterior decks, patios, porches Basement finishing and remodeling, which does not involve structural repairs Basement waterproofing Window and door replacements and exterior wall re-siding Septic system and/or well repair or replacement

Loan Program Resources

Download Renovation Loan Fact Sheet

Download Loan Fact Sheet


Home Value $
Downpayment (%)
Loan Term (yrs)
Interest Rate (%)