Refi + Renovate. Already own. Major project ahead.

Depends on your current rate. If your existing mortgage rate is below current market (anything under ~6% in 2026), don't refinance — use a HELOC and keep your low first-mortgage rate intact.

If your current rate is at or above market, refinancing can lower your blended rate AND fund renovation in one move. The break-even math is on the calculator above.

Other factors: HELOC closing costs are $0–2K; refi closing is 2–3% of loan amount. HELOC variable rate (~8.5–9.5%) vs. refi fixed rate. HELOC interest is tax-deductible only for "substantial improvement" per IRS Sec 24.

Yes. FHA 203(k) Refinance lets existing homeowners roll renovation costs into a new FHA-insured first mortgage. Same Limited (capped $75K) vs. Standard (no cap) split applies.

Refinancing into FHA from conventional triggers permanent MIP on the new loan if down equity is below 10%. Plan exit strategy — typically refinance back to conventional once equity rebuilds.

Conventional refi (HomeStyle): typically 20% post-renovation LTV to avoid PMI; 5–10% minimum equity acceptable with PMI. FHA refi: 3.5% post-renovation equity minimum.

The post-renovation appraisal (ARV) often pushes your equity ratio higher than the as-is appraisal would — making refi+renovate viable for borrowers who don't have enough current equity for a straight cash-out.

Yes — refinancing replaces your existing first mortgage with a new one at current market rate. If you have a 3% pandemic-era mortgage, locking into a 6.625% renovation refinance is a real cost.

Decision frame: calculate total monthly payment with refi+reno vs. current PITI + HELOC payment. The HELOC path keeps your low rate intact on the larger first-mortgage balance. Calculator above does the math.

45–60 days to closing, then up to 6–12 months of construction depending on program. Shorter than purchase+reno because no offer or seller coordination delays.

Drivers: contractor packet completeness, appraisal turnaround, underwriting conditions. Have your contractor lined up before applying — the GC bid is required for the appraisal and underwriting submission.

Limited. Renovation refinance loans require the renovation portion to fund actual home improvements — not debt consolidation, education, or unrelated cash-out.

For pure cash-out without renovation, see Cash-Out Refinance. For a head-to-head, see Reno vs. Cash-Out.

HomeStyle Renovation: limited investor support — some lenders offer it for non-owner-occupied properties with higher down payments (15–25%) and credit thresholds. FHA 203(k) and VA Renovation: owner-occupied only, never investment.

For investor renovation needs, DSCR loans and bridge loans are typically the right tools. Talk to a non-QM specialist.

Permitted improvements: kitchen and bath remodels, flooring, paint, mechanical systems, roofs, windows, additions (Standard 203k or HomeStyle), ADUs (HomeStyle only), accessibility modifications, energy efficiency upgrades.

Excluded: personal property (furniture, decorations), already-completed work, permits issued before closing date. The eligible-work table on the program-specific pages spells out exactly what each program allows.