RENOVATION & CONSTRUCTION Loans

A renovation loan can help fund home improvements, allowing you to turn a house into your dream home.

Renovating for a new home purchase

If you’re a buyer who’s found a home with great potential, but needs some repairs, Heritage Financial can provide a loan for the purchase and renovation costs. We offer a number of loan types that cover minor to major rehabilitation, all included with one mortgage payment.

FHA 203(K)

The Federal Housing Administration (FHA) offers loans specifically for renovation. FHA 203(k) funds a primary residence including repairs in one mortgage with a minimum down payment of 3.5%. There are two types of 203(k) loans:

  • Standard FHA 203(k)
    Allows borrowers the flexibility to finance major rehabilitation that costs a minimum of $5,000 up the county limit. The minimum amount of $5000 does not apply to the standard 203K as this product is only for repair/renovation cost that exceed $35,000.
  • Streamline FHA 203(k)
    Provides financing for minor renovations and repairs up to $35,000 of your mortgage. This is more commonly known as a limited 203k were the cost of repair/renovation costs do not exceed $35,000. There is no minimum repair/renovation cost any longer on this product.

Improving your current home

If you’re a current homeowner who is interested in making updates that would enhance the look and layout of your house, a renovation might be the solution. Based on the type and scope of your remodel, we can offer a variety of loans that will help with the cost.