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HomeStyle Renovation vs FHA 203K

How do the home improvement loans "HomeStyle Renovation" and "FHA 203k" compare side by side? If you're searching out this answer, then you're already familiar with the idea of renovation mortgages. The video below compares these two well-known options for financing a fixer-upper home purchase (or refinance). After the video we'll also take a look at some of the facts in a chart for you, so you're well-equipped to make the right decision for your home buying situation.


Download the Ultimate Guide to Renovation Loans here and learn more about all your renovation options.

See the embedded file here - HomeStyle Renovation vs FHA 203K 


Video description: Dan Moyle with AmeriFirst Home Mortgage sits down with renovation lending expert Joe Daly to discuss the difference between the FHA 203k and HomeStyle.

The Full 203k has a minimum repair budget of $5,000 and covers structural repairs like sill plate replacement (often due to termite damage). FHA 203k has a small down payment 3 1/2% and has mortgage insurance for the life of the loan.

Guy_BuildingHomeStyle is a loan product for conventional home buyers either with or without mortgage insurance who want to make some home improvements and upgrades, renovations or repairs roll the cost of repairs into the mortgage and still use a conventional type product. HomeStyle requires 10% down, with a maximum of no more than 50% of the as completed value. It does not require the home to be owner occupant, but an owner occupant can buy a home that's a 1, 2, 3 or 4 unit, also investors could buy using HomeStyle which is a 20% down here at AmeriFirst Home Mortgage. You can also use HomeStyle for a second home, which FHA 203k doesn't allow, same 10% down on a second home.


As you can see, much of the decision on which renovation mortgage to choose rests on your end goals. If you're looking to buy a house as an investment property and not live in it, you simply won't be able to use the FHA 203k to buy it. But if you're looking to only put a 3.5% down payment on a home, then HomeStyle isn't your option. 

Below is a simple chart that lays out a few of these comparison facts out for you. It's meant as a simple guide. You should talk to a mortgage consultant for a more detailed look at your options.


  FHA 203k HomeStyle Renovation
Loan Type Purchase/Refinance Purchase/Refinance
Property Type Most residential properties  Most residential properties 
1-4 Unit Primary Residence  Yes  Yes
1-Unit Investment Properties  No  Yes
Minimum Down Payment  3.5% of total acquisition (sale price + renovation cost)  5% with management approval; 10% for most primary & second homs; 20% for investment property
Mortgage Insurance (MI) Required  Yes  Down payments less than 20% and loan-to-values of more than 80% on refinance
Maximum Renovation Amounts No max as long as mortgage amount is within county guidelines for FHA Loans 50% of the as-completed value 



You can learn more about these renovation mortgage options and others in our free ebook "The Ultimate Guide to Renovation Loans" at the button below. Download your copy today - which includes a handy "renovation mortgage comparison" chart with several options for financing your remodeling projects.


Ultimate Guide to Renovation Loans

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