Loans Build or renovate HomeStyle Renovation
HomeStyle Renovation: buy and renovate a home in one loan
This conventional loan adds the cost of renovations to your mortgage, based on what the home will be worth when the work is done. Almost any project qualifies, including a new accessory unit.
New to this loan? Start here: Renovation loans: buy and fix in one loan A 3-minute lesson
How it works
- Find the home and get a bid. Your contractor writes an itemized, signed bid before closing.
- Appraisal on the finished home. The appraiser values the home as if the work were already done.
- Close one loan. Purchase and renovation are in one mortgage, with one rate and one closing.
- Work and draws. Funds are released as the work is inspected. Up to 50% can be paid at closing.
- Complete the project. A final inspection confirms completion, and the account closes.
Projects that fit this loan
- Kitchens, baths, flooring, windows and roofs
- Wildfire-resistant roofing and siding, and other resilience work
- An accessory unit or casita for family or rental income
- Decks, landscaping and other permanent improvements
Older homes and cabins around Mancos, Dolores and Cortez often sell below their potential. HomeStyle lets you buy one and bring it up to date without a separate construction loan or a second closing. It also works for a second home or rental, which FHA 203(k) does not.
Calculators and guides
Common questions
Can I build an ADU or casita with HomeStyle?
Yes. As of December 2025, a 1-unit home can add up to three accessory units where local zoning allows, and 2–3 unit homes can add one.
How is the loan amount determined?
It is based on the appraised as-completed value, which is what the home will be worth after the work. That is what allows you to finance repairs that a regular loan could not.
When does the contractor get paid?
Up to 50% of renovation costs can be paid at closing, with the rest released in draws as work is inspected and completed.
HomeStyle or FHA 203(k)?
HomeStyle allows luxury items, second homes and rentals, and its mortgage insurance can be canceled. 203(k) is more forgiving on credit. We price both.