Home Improvement & Renovation Loans

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  • Renovation Loans Simplified

    1. Purchase a Property or Refinance a Property You Own
    2. Homeowners and Investors can use Renovation Loans
    3. Add, Remodel, Change, or Repair items in the Property
    4. Not just FHA203k products anymore - there are USDA, VA, and Conventional Renovation Loans too! Some Renovation Loan products do not even need a down payment!*

  • When should you consider a Renovation Loan?

    *If you love the location of your home, but want some changes
    *If you want to fix up your home to sell at a later time
    *If you are buying a home that needs repairs that the seller cannot afford to fix (inspection or appraisal repairs)
    *If you want to a buy home that is being sold as-is or needs to be updated
    *If you need new appliances, want to add a pool, new roof, new kitchen and bathrooms or even add more rooms and space...

Renovation Loans...

"Let your home evolve with you; there's always room for improvement!" ~ Mr. 203k, Adam Backes

FHA 203k Limited

FHA 203k Limited loans are used when you want to make minor cosmetic changes to a house. The total rehab cost cannot exceed $35,000*.

FHA 203k Standard

FHA 203k Standard loans allow you to make substantial structural improvements, repairs, remodeling, and updating to a house, or even tear down and build a new one over the existing foundation.

Fannie Mae HomeStyle® Renovation

The HomeStyle® Renovation mortgage is similar to the FHA 203K products, but follows conventional underwriting guidelines set forth by Fannie Mae. It permits borrowers to include financing for home improvements in a purchase or re-finance transaction of an existing home including luxury items like in-ground pools.

VA Renovation Loan

VA Renovation Loans allow qualifying Veterans and Active Duty Military to include renovation costs in the loan amount of a house for purchase, or for repairs being done to an existing home with equity. There is no minimum rehab amount and any project exceeding $200,000 will require additional review and consideration.  Some structural work may be allowed with prior approval.  You may even not need a down payment depending on your available entitlement!*

*VA Renovation and USDA Renovation do not automatically require a down payment.

USDA Renovation Loans

USDA Renovation Loans allow buyers in eligible rural areas to include minor and major renovation costs in the loan amount of a house for purchase. These renovation loans are much like the FHA 203K as far as allowed renovations and overall process, but with no minimum down payment required. 100% financing up to the appraised value!

*VA Renovation and USDA Renovation do not automatically require a down payment.


The Acela Mortgage Team offers a wide array of renovation loans for all kinds of borrowers: first timers, veterans, rural homes, condos, multi-unit, vacation and 2nd homes and even investors! These types of loans are designed to cover cost of the property along with minor or major repairs in a single mortgage transaction, single loan, single payment, single down payment (if applicable*). Each program has their own distinct advantages. Make sure to speak with Adam to learn about all of your options and which one could work for you.

*VA Renovation and USDA Renovation do not automatically require a down payment.

If you’d like more information on Renovation loans fill out the contact form below.  If you’re ready to apply and get preapproved, click “Get Started”!

Nothing like a home renovation makes your house feel like the only place you want to be! 



Adam Backes
NMLS# 653829
DC, DE, FL, MD, NC, PA, SC and VA
Norcom Mortgage
NMLS #71655


Adam Backes - Acela Mortgage Team

(410) 610-4965
2139 Espey Court
Suite 1
Crofton, MD 21114

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