There are two renovation loan products/programs in the marketplace today, known as the FHA/HUD 203k, and Fannie Mae Home-Style. Learn more below.


AAA Home Improvements specializes in accommodating Renovation Loans.

There are 2 renovation loan products/programs in the marketplace today, known as the FHA/HUD 203k, and Fannie Mae Home-Style. They both allow you to purchase a home or refinance an existing property while including renovation cost, while leveraging future equity created by the proposed renovation that you can borrow against upfront or prior to the work being performed.

Fannie Mae

Like the 203k, Home-Style Renovation mortgage provides a convenient way for borrowers to make renovations, repairs, or improvements totaling up to 50 percent of the as-completed appraised value of the property with a first mortgage, rather than a second mortgage, home equity line of credit, or other, more costly financing method. Eligible borrowers include individual home buyers, investors, nonprofit organizations, and local government agencies. Mortgage insurance can be waived after reappraised with value creating a <78% LTV.

Benefits to Borrowers:

  • Cost-effective way to renovate or improve a home
  • Single mortgage means lower closing costs and typically a lower interest rate on a first mortgage
  • Borrowers can qualify for CLTV of up to 105% with eligible Community Seconds® subordinate financing
  • Loan amount based on “as-completed” value of the home or the cost basis (purchase money loans), whichever is less


A home equity line of credit (HELOC) is one option to tap into the value a homeowner has built up in her home. Proceeds from a home equity line of credit are often used to pay for home remodeling, a new car, education expenses or loan consolidation. A home equity line of credit is a flexible way to borrow against a home’s value.

When a homeowner applies for a home equity line of credit the size of the line will be determined by the amount of equity in the home and the credit situation of the homeowner. The bank will have a limit on the amount of equity above the current mortgage a HELOC can access. For example, if the bank has a 90 percent loan to value limit for lines of credit and a homeowner has a first mortgage for 80 percent of the home’s value, the line of credit could be for a maximum of 10 percent of the home value. There are two major benefits to home equity loans; The rate of interest on a HELOC will usually be lower than the rates on credit cards or other types of unsecured debt. Also, the interest paid on a HELOC may be tax deductible. The tax code allows homeowners who itemize their deductions to deduct the interest paid on up to $100,000 of home equity debt.

203K Renovation Loans

The FHA 203K loan is a type of financing that is insured by the Federal Housing Administration. This allows the home buyer to immediately turn the house they just bought into the house they always wanted by adding or remodeling a bath, creating a custom, designer kitchen, renovate or extend, make repairs and more, all with a single loan at attractive first mortgage rates.

It allows them to obtain both a purchase loan and rehabilitation financing in the same transaction. Before this loan program, a homeowner had to obtain an initial, temporary loan to purchase the home and a separate rehabilitation home loan to make any necessary repairs. Only after the repairs were complete could the homeowner gain permanent financing for their newly improved home.

203K Loans are not only for repairs and renovations, however. They offer a wide-range of benefits to home buyers, while still only requiring a 3.5% down payment for qualified buyers. For instance, they can be used to update or remodel a home, to refinance or to take care of inspection issues, including structural ones. The client could scrape and rebuild a home. They can also be used in conjunction with first time home buyer programs such as CHFA, CHAC, HUD $100 down, and more.

Other benefits of 203K Loans:

  • Clients can still close in as little as 30 days, and renovation can begin immediately after closing.
  • There are no improvement requirements or repair restrictions. Luxury items such as pools and spas may be included. This gives you the freedom and flexibility to truly make it your home.
  • The loan amount is based on the value of your home after the improvements have been made. More money = more improvements = more value.
  • The home purchase and improvements are financed simultaneously, so renovation costs are spread out through the entire term of the loan, giving the home buyer lower monthly payments.
  • There’s just one application, one set of fees and closing costs and one monthly payment for the loan. This means simplicity and convenience and less hassle.
  • Low appraisals can be increased by 10% or more.
  • Any money left over once the project is completed is removed from the principal balance of the loan.
  • There are two types of FHA 203K Loans:
  • 203(k’s) (streamline); and Full 203(k).
    • The full 203k is required for anything requiring structural changes or repairs. It may be used for additions such as new stories, room additions or enlargements, garage additions, etc.
    • The full can be used to completely scrape a house and start over.
    • The streamline 203k has a cap of $35,000 (including all fees). It is designed as a basic “refurbish and rehab” loan for borrowers to finance non-structural and cosmetic only repairs.


Line of Credit

In addition to the 203K financing, we also offer home improvement financing with the Home Projects® Visa® program offered through Wells Fargo Financial National Bank. This program offers you the benefits of choices from several different payment options. Wells Fargo Financial issues the Home Projects® Visa® Card and extends credit under the Home Projects® Visa® Credit Card utilizing an unsecured line of credit up to $25,000 based on your credit score.

Home Projects® Visa® program is an easy and convenient way to pay for your home projects purchases. Plus, as a Home Projects® Visa® cardholder you can enjoy exclusive special benefits throughout the year, such as:

  • No annual fee.
  • Deferred payment and interest promotional offers (6.9, 9.9, or 12.9% APR).
  • No-interest option with equal monthly payments (loan amount spread over full term with equal payments).
  • No-interest option with minimum monthly payments (3.5% min monthly payment of loan amount).
  • Reduced rate interest with monthly payments.
  • Regular terms with regular payments.
  • Deferred and low monthly payment options.
  • Advance notice of Home Projects Visa events.
  • Open line of credit for all your purchasing needs.
  • Convenient monthly payments.
  • Quick credit decision.
  • Everyday purchase convenience.
  • Easy quick add-on Purchase.

There are many Lenders that offer these products as well as conventional renovation loan programs. But just because they offer them doesn’t mean they are proficient in closing them! We have many great lender resources, as well as, in-house expertise that understand these loan products extremely well and can provide counsel on what will work best for you.

Fill out our questionnaire and we will contact you to schedule an in home project estimate at no cost. There is no obligation and never any hassle!

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This whole process went very smoothly and the timeline of the job was excellent. The crew did excellent work and were very helpful with all our questions. Thank you for the wonderful work.

Rex & Michelle

Denver, CO

The entire team was GREAT! The remodel was better than we expected the process to be.

Stan & Joyce

Denver, CO

Schedule an in home project estimate at no cost, no obligation and never any hassle!