Renovation Loan
Also known as 203(k) Loan, 203k Loan
A mortgage that bundles a home's purchase price and renovation costs into a single loan.
In plain English
Renovation loans, like the FHA 203(k), let you finance both the purchase (or refinance) of a home and the cost of significant repairs or upgrades in a single loan, based on the home's expected value after work is complete.
This can make a fixer-upper realistically affordable to buy and renovate, rather than needing separate financing for repairs after closing.
Where you'll run into it
Guides and tools on TheBuyingPath that cover renovation loan in context.
Related terms
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