Mortgage Myth #11: “You Need 20% Down to Buy and Renovate”

Why This Myth Exists

For years, buyers were told they needed 20% down to even think about buying — let alone improving — a home.

But that's no longer reality.

Today, qualified buyers can combine the purchase and renovation into a single mortgage with as little as 0–5% down. That means they can skip the bidding wars, buy the house that needs love, and turn it into their dream home.

The Real Renovation Loan Options

FHA 203(k)

• 3.5% down
• Finance the purchase + repairs in one loan
• Ideal for primary residences
• Great for first-time buyers

VA Renovation

• 0% down for eligible veterans
• Combine minor renovations into a VA loan
• Upgrade without needing a second mortgage

Conventional Homestyle Renovation

• 5% down for primary residences; 3% if first time buyer
• Covers almost any permanent improvement
• Use for primary, second homes, or even investments (with higher down payments)

What Can Be Renovated?

• Roofs, windows, HVAC
• Flooring, kitchens, bathrooms
• Paint, drywall, energy upgrades
• Even layout changes and additions and more.

Your dream home may just need a little work — and that work can be financed.

Who Benefits?

• First-time buyers frustrated by low inventory
• Move-up buyers who want customization
• Investors creating value
• Veterans making older homes shine

So What's Next?

Want to help your buyers (or yourself) buy and renovate with confidence?

→ Download our free Construction & Renovation Guide now
→ Contact Me to talk about a specific property or scenario

→ Check out the other Myths I've written about.