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Willow CreekHome Finance
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Programme

Rehab Loan

A rehab loan, either an FHA 203(k) or a Conventional HomeStyle, wraps renovation costs into the mortgage instead of leaving them to a separate loan or a credit card.

Model it — Monthly paymentAsk about it

What it is

A rehab loan finances the purchase and the renovation together. Instead of buying a home, then finding separate money for a roof or a kitchen, the work is underwritten and funded as part of the mortgage.

Two programs serve most borrowers: the FHA 203(k), for low down payments and flexible credit, and the Fannie Mae HomeStyle, for stronger credit profiles and a broader list of eligible improvements.

Rehab loans add steps a standard purchase does not have: a contractor bid, a work write-up, an as-completed appraisal, escrowed funds, and draw inspections during construction. Planning for those steps at the front of the process is what keeps the timeline predictable.

Who it fits

  • Buyers considering a home that needs work
  • Homeowners who want to renovate their current home
  • Buyers converting a property to a primary residence
  • Anyone facing structural or major system repairs

How it runs

  1. 1Estimate ScopeA licensed contractor prepares a detailed renovation bid and work write-up.
  2. 2ApplyUnderwriting reviews the contractor bid alongside the as-completed appraised value.
  3. 3Close & Begin WorkRenovation funds are held in escrow and released in draws as work is completed and inspected.
  4. 4Final InspectionThe final draw is released after the closing inspection and any required municipal sign-off.

Questions

What is the difference between 203(k) and HomeStyle?

203(k) is FHA-insured, so it allows lower credit scores and 3.5% down, and it carries FHA mortgage insurance. HomeStyle is a Fannie Mae conventional product, so private mortgage insurance can be avoided at 20% down and cancelled later on a lower-down loan.

Can I do the work myself?

Generally no. Most rehab programs require licensed contractors, and self-help work is tightly restricted where it is allowed at all.

How long does the work need to take?

Roughly six months from closing on most programs, with extensions available for larger projects.

Are luxury items covered?

Pools, outdoor kitchens, and similar luxury additions are excluded from the FHA 203(k). HomeStyle allows a wider range of improvements.

Ask about the rehab loan

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This form does not send anything. It validates what you type and shows a confirmation. Nothing is stored in a database, nothing is emailed, and nobody will call you. Willow Creek Home Finance is a fictional company built to demonstrate a design system.

Other programmes

Fixed Rate Mortgage

A predictable rate and payment for the life of the loan.

FHA Home Loan

Government-insured loans with 3.5% down and flexible credit guidelines.

VA Home Loan

$0 down, no monthly mortgage insurance, reusable entitlement.

USDA Loan

0% down loans for eligible rural and suburban homes.

Jumbo Home Loan

Financing for homes priced above the conforming loan limit.

First Time Home Buyer

Programs and guidance built for buyers purchasing their first home.