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Program-dependent: FHA 203(k) Limited caps at $75,000 of non-structural work; 203(k) Standard runs to your FHA county limit ($552,000 in the Twin Cities metro for 2026); conventional HomeStyle and CHOICERenovation allow renovation costs up to 75% of the as-completed value within the $832,750 conforming limit. In practice, six figures of renovation is routinely financeable.

The percentage is the same as the base program — 3.5% FHA, as low as 3–5% conventional, $0 VA — but it applies to the combined purchase-plus-renovation amount. On a $400,000 house with a $55,000 renovation, a 5% down payment is $22,750 rather than $20,000.

Typically a little — often in the neighborhood of a quarter to half a percent above a comparable standard loan, reflecting the extra administration. Many clients refinance after completion if the market cooperates. Ashland prices your exact scenario rather than quoting folklore.

Unused contingency reserve and leftover renovation funds are applied to your loan principal after the final draw. You don't lose it, and nobody pockets it — it just makes your balance smaller.

Yes — every major program has a refinance version. You refinance into a new loan sized on your home's as-completed value, and the renovation funds go into escrow exactly like a purchase. It's the classic "love the location, hate the kitchen" play.

Yes — renovation loans use YOUR licensed, insured contractor, not a lender-assigned one. They'll need to provide credentials, references and an itemized bid. Our free contractor-vetting checklist covers exactly what to ask.

FHA is essentially no. Conventional programs allow limited DIY on a primary residence if you're provably qualified — but only materials are financeable, never your labor, and many lenders decline it. For most people, licensed pros keep the loan and timeline clean.

FHA draws the line at luxury items — pools, outdoor kitchens, tennis courts. Conventional HomeStyle and CHOICERenovation allow almost any permanent improvement that adds value, luxury included. Nothing temporary or non-affixed (furniture, decor) works on any program.

FHA 203(k) Limited: 9 months. 203(k) Standard and conventional programs: generally 12 months (some scenarios 15). Your contractor commits to a timeline in the bid, and the draw schedule keeps it honest.

That's the contingency reserve's whole job — 10–20% of the budget set aside up front for surprises. Bigger discoveries become change orders, which the lender (and consultant, on a Standard) reviews and approves.

It adds roughly 1–2 weeks versus a standard purchase, mostly for the contractor bid and the as-completed appraisal. A prepared buyer with our document checklist and a responsive contractor closes on a very normal timeline.

The escrow account does, in draws, after inspections confirm the work. You never front renovation costs, and the contractor is never paid for unfinished work. It's the safest payment structure in home improvement.

Yes, wherever local code requires them — and the loan actually enforces it, since inspections verify permitted work. Your contractor typically pulls them; permit costs are financeable as part of the project.

Usually, for cosmetic-scope projects. For a full gut where the home is uninhabitable, the 203(k) Standard can finance up to 6 months of mortgage payments while you live elsewhere — ask Ashland whether your scope qualifies.