The Renovation Loan We Found on Instagram
Wanted to give you guys a tip on how we’re making this renovation work—because let me tell you, navigating this market is no joke. We first came across the 203K loan option thanks to Matt Porcaro on Instagram (@the203kway)—and that’s what originally got us thinking, okay, maybe this reno thing is actually doable.
The 203K is an amazing option for first-time buyers or anyone looking for a renovation loan that’s paired with an FHA mortgage. But our house ended up being outside the FHA parameters, so we had to pivot.
That’s when we found the HomeStyle Renovation Loan —and honestly, it’s been a total game changer. With home prices where they are right now, this is such a smart way to renovate and create your dream home without paying millions of dollars out of your own pocket. These loan products are especially great if you’re a first-time buyer or looking for a conventional mortgage with room to customize.
Especially here in Dallas, the market is wild. New builds in great areas are rare, and the ones that are out there? You’re looking at $1M+ easy. Most of the time, it feels like you have to choose between a shiny new build in a sketchy area or a dated home in a great neighborhood for a crazy price. But there’s another option: find a home with potential in a solid area and renovate it your way—at a better price.
That’s where the HomeStyle Renovation Loan really came through for us.
So, what even is this loan?
The HomeStyle Renovation Loan is backed by Fannie Mae and lets you wrap renovation costs into your mortgage. Whether you're buying a fixer-upper or refinancing your current home to give it new life, this loan allows you to bundle it all into one mortgage—with one monthly payment. No separate loan, no draining your savings, just one smart financing option.
Trust me—I thought it sounded too good to be true too. But once we dug into the details, it made total sense and opened up way more possibilities than we expected. Shoutout to Brad Follis at PrimeLending for helping us through the entire process!
What can you use it for?
Basically anything that adds value to the home, like:
A new kitchen or bathroom
An addition or open-concept layout
Flooring, windows, or roof updates
Energy-efficient upgrades
Even outdoor work or adding a pool
As long as the work adds value and is done by a licensed contractor, you’re good to go. (DIYers, I know—we felt the same way, but trust me, having it professionally done is part of what protects your investment.)
Is there a limit on how much you can renovate?
Not a strict one. There’s no fixed cap like “you can only spend $50K.” Instead, the limit is based on the after-renovation appraised value of the home. The total loan amount (purchase price + renovation costs) can’t be more than 75% of what the home will be worth once all the work is done.
So basically: the more value your renovation adds, the more you can do.
Why we’re into it
This has been a total game changer for us. We found a home in a great neighborhood that needed a little (okay, a lot of) love, and instead of being scared off by the work, we saw it as an opportunity. The HomeStyle loan gave us the flexibility to buy in the location we wanted and actually make the house ours, all without needing to write two separate checks or dip into a ton of cash.
A few quick things to know:
You’ll need a contractor and detailed renovation plans upfront.
Renovations need to start within 30 days of closing.
You’ve got 6 months to finish the work.
Funds are released in stages as the work is inspected and completed.
Bottom line: If you’re house hunting and feel stuck between overpriced new builds and dated homes in the right zip code—this loan might be the solution you didn’t even know existed (we sure didn’t until the scroll hit just right). With the HomeStyle Renovation Loan, you can get the location and the look you want—without blowing your budget.
Have questions? Drop them below! Always happy to share what we’re learning as we go!