Skip to content

Renovation Mortgage
MI First Time Home Buyer; new home loan; Royal Oak home loan; Rocket Mortgage pre approval
Upgrade your home with our renovation mortgage!


Don't have time talk? No problem! Complete the form and Fortress Home Mortgage will email the answers to your renovation mortgage questions when you are ready to go!
  • This field is for validation purposes and should be left unchanged.

Renovation Mortgage | Highlights

Fast turn times.  

One appraisal.  

Free consultation. 

FICO score friendly.

Adds value to your home.

No App Fee! 

Mortgage Calculator Worksheet

Enter your email address and receive a free summary worksheet!








Monthly Payment

Principal & Interest $1421

Monthly Taxes $1421

Monthly HOA $1421

Monthly Insurance $1421

Monthly PMI $0

Worksheet Summary | Highlights

Down payment
Find out how much of a down payment is right for you.

Closing costs
Review the out of pocket expense for your transaction.

Custom tailored for you
By far, our summary is uniquely distinguishable.

Free Consultation

Mortgage e-book. Free consultation. Rocket your mortgage into high gear!


Select your preferred date & time! 

Receive extra incentives!

Uniquely tailored to your needs!

Speak directly with John Sarkisian!

Significantly expedite your mortgage!


Renovation Mortgage Required Documentation

Conventional mortgage financing. Required documentation to apply.1.  W2’s (most recent two years)
2.  Two months of bank statements (all pages).
3.  Copy of your current driver’s license

On paper the process is extremely simple.  Essentially, all that a borrower needs to begin the underwriting process are the above docs.  All in all, these are the items to start your renovation mortgage journey!

Renovation Mortgage Options

Renovation mortgage options; improve your existing home

Fortress Home Mortgage is a leader in renovation mortgage programs.  We offer two distinct programs that help borrowers finance their renovations.  A renovation mortgage can be used when buying or refinancing.  For example, a borrower would refinance and take cash out.  However, a savvy borrower will use the renovation mortgage program when buying a new home.  In this case, the funds needed to renovate are built into the contract sale price of the home.  Moving forward, lets take a closer look at how a renovation mortgage works.

Renovation Mortgage – How it Works

As mentioned, the renovation mortgage is used when buying or refinancing.  Simply put, the allowable funds are based on either the sale price + cost of renovation.  Or, the “as completed” home value.  In either case, the renovation funds are set aside in escrow.  The funds are then drawn as needed by a licensed contractor.  Finally, the funds are allocated to complete the project per the contractor’s estimate.  It is important to remember, a licensed contractor must be used for the renovations.  Typically, the contractor on record cannot be the borrower or homeowner.

Click here to schedule your renovation mortgage free consultation!  

Fannie Mae – Homestyle Renovation Mortgage

Fannie Mae Homestyle Renovation Mortgage

Without a doubt, Fannie Mae’s Homestyle renovation mortgage is our top pick.  It offers a lot of flexibility, and there is no minimum cost requirement.  Renovations are allowed for exterior and interior upgrades.  Furthermore, the renovation mortgage funds are allowable for appliances, flooring, and general carpentry.   

The down payment percentage is based on the lesser of the following:

  1. Purchase price and cost of renovation
  2. The “As-completed” value

For example, a home purchase has a listed sale price of $100K.  Next, the borrower wants $35K in funds to renovate the home.  In this scenario, the contract sale price becomes $135,000 dollars.  The borrower has a mortgage approval for 95% of the sale price.  In the end, the borrower will finance $128,250 dollars.  Or, the borrower may finance 95% of the “as-completed” value.  The lender goes off of the LOWER figure in either option.      


FHA 203K – One Appraisal; Two Values

FHA 203K renovation mortgage

Similar to the Homestyle renovation, is the FHA 203K renovation mortgage. There are two distinct versions.  In either case, the focus is on the dollar amount of the renovation mortgage proceeds.  First, is the “limited” 203K, which is a renovation cost at/or below $35K.  Second, is the “standard” 203K, which is a renovation cost at/or above $35K.  In both cases, the appraisal is based on an “as is” value, and “after improvement value.”  In other words, the contract sale price is the “as is” value.  Objectively, the “as is” value must be equal to or greater than the contract sale price.  Additionally, the FHA 203K requires an “after improvement value.”  Simply put, the “AIV” must be equal to or greater than the sum of the contract sale price + repairs.



Back To Top