Renovation and Repair loans are wonderful tools for both purchasing a fixer upper or making improvements to a home you already own. There are two basic ways to finance over current value improvements to a home:

1. FHA 203K Renovation and Repair - this program is for non major improvements up to $35,000 that must be completed within 90 days of closing. Interest rates are the same as a regular FHA loan with costs only slightly increasing (greater of either $350.00 or 1.5% of the total improvement costs).

2. Conventional Renovation and Repair - this program is for any type of improvements with the only amount limit being the conventional loan limit of $417,000.00. Improvements can take as few as 1 month to 12 months. Interest rates are slight higher than a traditional purchase loan since the lock times are greater (60 to 360 days) with fees being slightly higher as well.