So you’ve bought a great old house with strong bones, but it’s a little outdated or doesn’t align with your vision of the ideal home. Maybe you want to bring your residence into the 21st Century by creating an open floor plan. Or perhaps you’d like a larger kitchen with a big island. If you’re inspired by the Property Brothers or an idea on Pinterest or Houzz, you can transform your house into a home that fits your style and personality.

All of these ideas are really great, but they do come at a cost. When it comes to a home improvement project, even the smallest adjustments can lead to new discoveries about the house and, often, additional repairs or fixes. You might also want to expand on your original project so that you don’t have to keep your house in a state of perpetual construction. Fortunately, with the right financing, you can transform your home into the one you’ve dreamed of.


Tackling a home improvement project is not just about making it more comfortable. In fact, the improvements you make on your home can lead to greater benefits for you. These benefits include:

  • Money savings over time: Simple fixes in your home can lead to great energy and money savings. From installing insulation in your attic to simply re-caulking leaks around doors and windows, you can save money on your energy bill.
  • A greener lifestyle: Are you committed to a more environmentally friendly world? A number of home improvements — from making energy-efficient upgrades to using more sustainable building materials — can help you lead a greener life.
  • Increase your profits when you sell: Increasing the market value of your home with home improvements can allow you to sell your home at a higher price. This can mean more money for your next home or a second home.
  • Increase your home equity: With greater home equity, you can secure a home equity loan or home equity line of credit (HELOC). This can help you finance other dreams, such as a second degree, or pay off other debts.
Financing Your Improvements with a 203K or Home Equity Loan

If you want to make repairs on your home, you have a great number of opportunities available to you.

One of the most accessible options for a young person looking to start a home renovation is a 203k mortgage loan backed by the Federal Housing Administration. This loan is available to both homebuyers and refinancers. The FHA’s 203k program comes in two flavors: the Standard loan and the Streamline loan. The Streamline 203k loan can cover minor adjustments and projects under $35,000, while the Standard version has an unlimited project cost ceiling for extensive renovations.

Another option is a home equity loan. A home equity loan typically has a lower interest rate than a credit card or other consumer loans, which can help you make your home improvement project affordable. In addition, the interest paid on a home equity loan may be tax-deductible.

To help prepare for a home improvement project and loan, we recommend that you get started on a budget plan. With a clear budget in mind, we can help you get access to an FHA or home equity loan amount suitable for your improvements.

Your plan should cover:

  • What types of repairs you want to cover
  • The costs of buying supplies and/or hiring a contractor
  • The cost of inspections
  • Additions or add-ons during the project
  • A contingency fund for unexpected costs
  • Application fees or closing costs

Don’t wait to start your home renovation project. Contact us today! We can help you bring your home renovation ideas to life.

Home Improvement Loans


In 1978, the Federal Housing Administration (FHA) introduced the FHA 203k mortgage insurance program which enables borrowers to purchase or refinance their home and include the cost to renovate it within the same loan. The FHA 203k Standard allows borrowers to make a wide range of improvements, including structural changes and additions to the building footprint.

Features include:

  • Opportunity to borrow against the value of the home after improvements – up to 110% of future value!!
  • Low 3.5% down payment
  • Flexible credit qualifying
  • Available for owner-occupied, 1-4 unit properties, PUDs, condos and REO properties
  • Loan size is determined by the limit set by the FHA for your area; repair budget is calculated based on the appraisal, your credit limit and the purchase price of the property
The FHA 203k Streamline is a simplified version of the FHA 203k Standard loan program. It permits home buyers to finance up to an additional $35,000 into their mortgage to improve or upgrade their home before move-in or as part of a refinance. Home buyers can quickly and easily tap into cash to pay for property repairs or improvements. The FHA 203k Streamline is designed to complete minor, non-structural repairs.
For the purchase and renovation of Fannie Mae® owned homes, loan features include:

  • Down payment — at least 3% and can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
  • Flexible mortgage terms (fixed or adjustable rate)
  • Renovation amount based on “as completed” appraised value
  • No mortgage insurance
  • Available for primary residences, second homes and investment properties

1155 Meridian Avenue
Suite 100
San Jose, CA 95125
NMLS Branch ID 216565



Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act NMLS#216565
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