Purchase Loans
Renovation
Buy the fixer-upper and finance the repairs in one loan.
Renovation loans let you buy a fixer-upper and finance the repairs all in one mortgage. The home is appraised based on what it will be worth after renovations — not its current condition. In Washington's tight market, this is how smart buyers get more home, in a better neighborhood, for less money.
Key Features
- • Finance purchase + renovations in one loan
- • Appraised on after-renovation value
- • FHA 203(k) and conventional HomeStyle options
- • One closing, one monthly payment
- • Down payments as low as 3.5% (FHA) or 5% (HomeStyle)
- • Up to $35K of light cosmetic repairs on Limited 203(k) — no full contractor process
How the process works
You write an offer on the fixer with a renovation contingency. We get a contractor bid for the work. The appraiser values the home both as-is and as-repaired. We close on the combined loan — purchase price funds go to the seller, renovation funds go into an escrow account. The contractor starts work, requests draws as milestones are hit, and a HUD-approved consultant (on 203(k)) or the lender (on HomeStyle) signs off on each draw. When the work is done, you're living in a renovated home with one mortgage.
Where renovation loans shine in WA
Older Seattle neighborhoods (Beacon Hill, Rainier Valley, Ballard, West Seattle), North Tacoma, Hilltop, Proctor, much of Spokane's older grid, Bellingham's Lettered Streets, and Bremerton — anywhere with great bones and dated finishes. Adding an ADU in Seattle, Tacoma, or Olympia (all ADU-friendly cities) can also be a HomeStyle project that pays for itself in rental income.
Pros
- • Buy under-market and create instant equity
- • One closing, one rate, one payment
- • Renovations financed at mortgage rates, not credit card rates
- • HomeStyle allows investment properties
Cons
- • More paperwork than a standard purchase
- • Longer close (35–45 days typical)
- • Contractor must be vetted and approved
- • Slightly higher rates than standard conventional/FHA
Best for: Buyers willing to put in a little vision (and some construction-period patience) to get more home for their money — or to add an ADU in an ADU-friendly WA city.
Common Questions
Related Loan Types
Popular WA markets for Renovation
Renovation loans pair beautifully with WA's older housing stock in Seattle, Tacoma, and Spokane.