Fannie Mae and Freddie Mac both offer conventional renovation loans: Fannie Mae HomeStyle® and Freddie Mac CHOICERenovation®. With down payments as low as 3% of the total acquisition cost, the loans can be used to either purchase and renovate or refinance and renovate. There’s also a wider range of eligible projects than some other loans, and you can finance a second home or investment property.

FHA 203(k) loans come in two versions, depending on the type of renovation and the amount you’ll be spending on your project. You can purchase and renovate or refinance and renovate with either loan. The Limited loan is for smaller, non-structural projects costing under $75,000. The Standard loan is for larger cosmetic projects or structural changes from $5,000 and up. One big advantage of an FHA loan is that your down payment can be as low as 3.5% of the total acquisition cost of the property.

Is the home you want to renovate in an eligible rural area? Then a USDA renovation loan could be just right for you. And “rural” includes small towns and even some suburban areas. There are income requirements for these loans, they are for purchases only, and target single family properties without income producing features.

​A major benefit is that you can get a loan with 0% down and borrow up to 100% of the home’s after-renovation value. There are two USDA renovation loans: Limited is for non-structural repairs up to $35,000, while Standard covers structural and non-structural repairs exceeding $35,000.