Mortgage  Question?
Fixer Upper Mortgage Program That Allows Sweat Equity

Are there home renovation mortgage programs that allow you to use sweat equity?

Harry Jensen, Trusted Mortgage Expert with 45+ Years of Experience
, Trusted Mortgage Expert with 45+ Years of Experience

Because you want to do the renovation work yourself, the FHA 203(k) Mortgage Program is likely your best and only financing option. We provide a comprehensive overview of fixer-upper mortgage programs on FREEandCLEAR that you can review but the FHA 203(k) Program is the only program that permits a limited amount of sweat equity as long as the work is performed by a qualified contractor. Additionally, the FHA 203(k) Program enables borrowers to finance both the purchase of a home as well as the cost of significant rehabilitation, remodeling and repairs to the home with a single FHA loan and requires a down payment of only 3.5% of the post-renovation property value. We provide a thorough overview of the FHA 203(k) Mortgage Program on FREEandCLEAR. I am assuming that you are looking to buy a home and not renovate a property that you already own, in which case a home equity loan or line of credit (HELOC) may be viable financing options.

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About the author

Harry Jensen, Mortgage Expert

Harry is the co-founder of FREEandCLEAR. He is a mortgage expert with over 45 years of industry experience. Over his career, Harry has closed thousands of loans for satisfied borrowers and now offers his advice and insights on FREEandCLEAR. More about Harry

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