Home Renovation Loans

Take a house you like and turn it into a home you love with a home renovation loan. Buy or refinance and customize, modernize, and update all with one loan. Get money for simple upgrades right up to major improvements. All with monthly payments that may be tax deductible¹ and at rates typically below credit cards or personal loans.

How does a home renovation loan work?

A home renovation loan pays for remodeling to boost home enjoyment and potentially increase home value.

• Add a custom bathroom, gourmet kitchen, or create open-concept living spaces
• Make those much-needed repairs
• Transform your current home, or buy a home and remodel to make it your own
• Finance up to six months mortgage payments during major renovations²
• Borrow based on the after-upgrades value of your home
• Down payments as low as 3.5%³
• Borrow up to $500,000 for renovations with a Jumbo cash out refinance

Our Home Renovation Loan professional stays with you throughout the journey, on call to answer your questions throughout the home loan process. Call 888-966-9044 or sign up to start now!

Two Great Choices for Home Renovation Loans

FHA 203k Loan

Planet Home Lending is an approved FHA 203k home renovation lender. Remodel with confidence. Our renovation department handles the payment process, which helps you manage your project from start to wow!

FHA 203k renovation loans are a great choice when you want to purchase or refinance and renovate:

• Buy a not-quite-perfect home and put your own stamp on it
• Buy a fixer-upper and make repairs after closing. Move in after major remodeling is complete².
• Add a custom bathroom, updated kitchen, or finished basement
• Create open-concept living spaces
• Update furnace, AC, roof, decks, or other home systems

Our Home 203k Certified Renovation Specialists stay with you throughout the journey, on call to answer your questions throughout the home loan process. Call 888-966-9044 or sign up to start now!

Jumbo renovation loan program (cash-out refinance)

Pull up to $500,000 from your high-value home with a Jumbo cash out refinance for renovations. Treat yourself with an oversized gourmet kitchen, create sweeping outdoor entertainment spaces, or indulge in a master bedroom sanctuary.

Use a Jumbo loan when your loan amount exceeds the Fannie Mae/Freddie Mac (conforming) limits for your area. Our Jumbo refinance professional stays with you throughout the journey, on call to answer your questions throughout the home loan process.

How does a 203k refinance work?

Planet's home renovation mortgages deliver competitive pricing with concierge service:

• Step 1: Talk over your home improvement vision
  Our home Certified Renovation Specialist discusses your needs. See options and choose the one that's right for you. Know how much you may be able to borrow and when you can close.
• Step 2: Pick your contractors
  Hire a licensed general contractor or up to three licensed home improvement contractors. They'll each complete a package detailing their experience and provide a work plan for your project.
• Step 3: Watch as your dream home comes to life
  Planet's FHA 203k mortgage department handles the payment process as your renovations progress.

Our Home Renovation Loan Professional stays with you throughout the journey, on call to answer your questions throughout the process. Call 888-966-9044 or sign up to start now!

How does a 203k purchase and renovate loan work?

Planet's home renovation mortgages deliver competitive pricing with concierge service:

• Step 1: Talk over your home purchase vision
  Our certified renovation mortgage specialists discuss your needs and show you what's possible.
• Step 2: Gain Pre-Approval Power
  Pre-Approval provides certainty you’re confirmed to purchase with an FHA loan. Know how much you can borrow and when you can close. Shop for a house and create your dream home with confidence.
• Step 3: Buy a home you like
  Find a house and plan your dream home.
• Step 4: Pick your contractors
  Hire a licensed general contractor or up to three licensed home improvement contractors. All contractors complete a package detailing their experience and provide a work plan for the project.
• Step 5: Watch as your dream home comes to life
  Planet's FHA 203k mortgage department handles the payment process during the project. For major renovations, you may finance up to six months payments so you don't have to live in a work zone or have two house payments.

Our Home Renovation Loan Professional stays with you throughout the journey, on call to answer your questions throughout the process. Call 888-966-9044 or sign up to start now!

Home Renovation Loan Frequently Asked Questions

Do home renovation loans carry higher interest rates and different terms than regular home purchase loans?

They're usually slightly higher. Mortgage interest rates are based on risk. The more equity you take out of your home, the higher your interest rate may be.

Home renovation loan rates are also influenced by how long the loan is. The shorter your mortgage "term," the lower your interest rate. 15-year home renovation loan rates will usually be lower than 30-year 203k house renovation loan rates.

What's the benefit of a 203k home renovation refinance vs a HELOC or a 203k refinance vs a second mortgage?

HELOCs (home equity lines of credit) are typically variable rates. That means the interest rate you pay and your monthly payment can rise. After the draw period, you have to pay not only the interest, but also repay the principal. That can lead to shockingly high monthly payments.

A fixed rate 203k refinance will have the same principal and interest payments during the whole loan term. They won't rise even if Federal Reserve raises rates.

Second mortgages usually have higher interest rates than 203k refinance home loans.

Do I need good credit for 203k home improvement loans?

There is no official minimum credit score to get an FHA 203k. Instead, the Federal Housing Administration lets FHA-approved lenders, like Planet, consider all your credit history. That includes things like:

• Making auto payments on time.
• Paying mortgages on time.
• Having judgments or collections.
• Past bankruptcy or foreclosure.
• How much of your income you spend on your bills each month.

Even if there's a credit oops in your past, a 203k Certified Renovation Specialist may be able to work with you.

Call 888-966-9044 or sign up to start now!

Are all home lenders FHA 203k loan lenders?

No. There are far fewer FHA 203k loan lenders than regular FHA lenders because 203k lenders need specialists to supervise contractor payments and review renovation work plans.

What's a 203k streamline home renovation loan? What's an FHA limited 203k loan?

A 203k streamline is for limited repairs that the average homeowner could manage on their own (so no structural repairs!). It's also called an FHA limited loan.

You can finance up to $35,000 (including fees) for renovations with a limited 203k. If you're spending more than $35,000 on renovations, go with a standard 203k home loan.

Not sure which 203k to use? Our 203k Certified Renovation Specialists can walk you through your options. Call 888-966-9044 or sign up to start now!

How are 203k loan requirements different from regular FHA loan requirements?

The extra requirements for a 203k mostly involve having Planet Home Lending review your remodeling plans and manage paying the contractors. Other than that, the rules for qualifying for a 203k renovation loan are just like the rules for regular FHA home loans.

¹ Planet Home Lending does not provide tax advice. Please seek the advice of a qualified tax advisor to see how the rules for deducting mortgage interest apply to your specific situation.

² Up to 6 months mortgage payments can be financed if the property is uninhabitable during renovation.

THIS PRODUCT OR SERVICE HAS NOT BEEN APPROVED OR ENDORSED BY ANY GOVERNMENTAL AGENCY. THIS OFFER IS NOT BEING MADE BY AN AGENCY OF THE US GOVERNMENT.