A 203k loan, also known as an FHA 203k loan, is a type of mortgage loan that allows homebuyers and homeowners to finance the purchase or renovation of a home with one loan.

The loan is insured by the Federal Housing Administration (FHA), which means that borrowers can qualify for a lower down payment and credit score requirements than with a traditional mortgage.
There are two types of 203k loans: the standard 203k loan and the limited 203k loan.

The standard 203k loan is used for major renovations, such as structural repairs, adding a room or a new roof. The loan amount is based on the after-improved value of the home, meaning the estimated value of the home after the renovations have been completed.

The limited 203k loan is used for minor renovations, such as replacing appliances, repairing or replacing HVAC systems, and other non-structural improvements. The loan amount is capped at $35,000 and does not require an appraisal.

Both types of 203k loans require that the borrower work with a HUD-approved consultant who will oversee the renovation process and ensure that the work is completed according to the loan requirements.

One of the benefits of a 203k loan is that it allows borrowers to finance the cost of renovations into the mortgage, which can make it easier to afford the renovations without taking on additional debt.

A Fannie Mae Renovation loan, also known as the HomeStyle Renovation Mortgage, is a type of mortgage loan that allows borrowers to finance the purchase or renovation of a home with one loan.

This loan program is offered by Fannie Mae, a government-sponsored enterprise that works to expand access to affordable mortgage financing. The HomeStyle Renovation Mortgage allows borrowers to finance up to 75% of the after-improved value of the property, which means the estimated value of the home after the renovations have been completed.

The loan can be used for a variety of renovations, including structural repairs, cosmetic improvements, and energy-efficient upgrades. However, the renovations must be completed by a licensed contractor and must meet certain standards and requirements.

One of the benefits of the Fannie Mae Renovation loan is that it allows borrowers to finance both the purchase price of the home and the cost of renovations with one loan, which can be more convenient than taking out separate loans for each expense. Additionally, the loan offers flexible terms and competitive interest rates.