USDA

RENOVATION

LOAN

HELPING YOU MAKE A HOUSE YOUR HOME

With the USDA Renovation loan program, you may be able to purchase a home in a USDA-eligible rural area with as little as zero down payment!

Plus, since it's a program designed to assist with renovations, you can bundle the cost of repairs or upgrades into the same loan. This gives you a simple and lower-cost way to make the changes that will turn a house into your home.

Program Highlights

Purchase existing dwelling

Customize improvements

One loan closing

Funds to purchase and rehabilitate

100% financing available

Maximum loan: 100% of “As Improved” appraised value

Upfront guarantee fee may exceed “As Improved” value

No future loan amount changes or re-amortization

Key Benefits

  • Correct dwelling deficiencies

  • Revitalize existing housing stock

  • Retain personal reserves post-closing

Eligible Loan Costs:

Interior Improvements:

  • Modernize kitchens, bathrooms, flooring

  • Add accessible features for disabilities

  • Additions, structural alterations, reconstruction

  • Energy efficiency upgrades

Exterior & Safety Repairs:

  • Install/repair septic systems and water wells

  • Remove safety/health hazards

  • Repair existing amenities (e.g., pools, saunas, accessory units)

Repair Types & Limits

Limited Program With Non-Structural Repairs:

  • Finance up to $35,000 in repairs

  • No minimum repair cost

  • Must be habitable

  • Contingency reserves: 10% of the cost of labor, materials, and soft costs

  • 2 Draws, Initial and Final both at 50%

  • The borrower selects the contractor, but the lender must verify that the contractor is qualified

Standard Program With or Without Structural Repairs:

  • Finance above $35,000 in repairs

  • Requires certified inspector and full inspections

  • PITI reserves up to 6 months if dwelling uninhabitable

  • Up to 5 draws

  • HUD consultant determines number of draws

  • Each draw request will have a 10% holdback

  • The borrower selects the contractor, but the lender must verify that the contractor is qualified

Loan Types

Limited Renovation Loan

For non-structural repairs (≤ $35,000)

Standard Renovation Loan

For structural repairs or high-cost improvements

Loan Types

Limited Renovation Loan

For non-structural repairs (≤ $35,000)

Standard Renovation Loan

For structural repairs or high-cost improvements

Eligibility

Single-family primary residences only

Must be in USDA-approved rural areas

Eligibility

Single-family primary residences only

Must be in USDA-approved rural areas

Loan Type Overview

  • HomeStyle Renovation provides a simple and flexible way for borrowers to renovate with a conventional first mortgage, rather than a second mortgage, HELOC, or other more costly methods of financing 

  • No minimum dollar amount required for repairs

  • Loan amount based on “as-completed” value

  • Can help save loans that have repair contingencies

  • Not just for owner occupied

  • Luxury improvements allowed

  • CHOICERenovation® is advantageous for borrowers who wish to refinance an existing mortgage and take on a substantial home improvement project.

  • Loan amount based on “as-completed/After improved” value

  • Can help save loans that have repair contingencies

  • CHOICERenovation® can be used for 1-unit second homes or Investment property

  • Luxury Improvements Allowed

Ready to Make a Move?

Let’s talk about your next chapter — whether it's finding your dream home, selling a property, or investing in your future.

Buying or selling a home is more than a transaction — it’s a life-changing experience. At Covenant Realty, we treat it that way.

We’re not just helping you find a house — we’re helping you find home.

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