Beaufort · Your home. Your next step.
Beaufort Purchase and Renovation Loans may help you buy a home and finance eligible repairs in one mortgage. See how the work, loan costs and finished-home payment fit together before you choose a fixer-upper.
The right home may need a new roof, an updated kitchen or other repairs. A renovation mortgage may let you finance the purchase and eligible work together, instead of finding a separate repair loan. FHA 203(k) and conventional options such as HomeStyle have different rules. We can help you compare the work, home use and full cost.
Choose the home and work with a contractor on written plans and costs. The lender reviews you, the property and project before closing. Approved repair funds are held and paid under the loan’s rules after closing.
If you own the home, ask about replacing the current mortgage and including approved work. Compare the new rate, fees and full payment with keeping your loan. Repair funds are controlled; this is not unrestricted cash to spend.
HUD’s 203(k) overview explains the purchase-and-repair and refinance-and-repair options.
HUD’s 203(k) consumer guide explains the project and consultant roles. For a conventional option, Fannie Mae’s HomeStyle guide explains its separate project process. Ask us how the selected lender handles payments, inspections and completion dates.
FHA 203(k) and HomeStyle use different mortgage and repair limits. For a one-unit home in Beaufort County in 2026, compare the figures below. Your down payment, the home’s value and the lender’s review still affect what you can borrow.
| Program | Mortgage limit | Repair allowance and scope |
|---|---|---|
| Limited FHA 203(k) | $638,250 base loan limit | Up to $75,000 in total rehabilitation costs, including applicable fees and reserves. For allowed non-structural work; a budget below the cap does not make every project eligible. |
| Standard FHA 203(k) | $638,250 base loan limit | At least $5,000 in rehabilitation costs. Can cover eligible major or structural work. It does not use Limited’s $75,000 repair ceiling; the mortgage, value and project rules still limit the plan. |
| HomeStyle Renovation | Ask us to review the mortgage amount for your home and plans. | For a purchase, renovation costs may be up to 75% of the lower of: the price plus renovation costs, or the home’s appraised value after the work. This is not 75% of the mortgage amount. |
The FHA figures are base mortgage limits; any financed upfront FHA insurance is handled separately. These are one-unit examples: two- to four-unit main homes have different mortgage limits. Manufactured-home HomeStyle projects have a separate 50% renovation-cost rule. Review HUD’s Standard and Limited 203(k) comparison, HUD’s county mortgage limits and Fannie Mae’s HomeStyle rules for the relevant conditions. Start with our South Carolina FHA 203(k) guide and South Carolina mortgage programs for the broader choices. HomeStyle can also cover eligible one-unit second homes or rentals; FHA 203(k) here is a home-to-live-in option. Ask which program and work fit your plans.
Compare your down payment or refinance costs with loan fees, contractor estimates, permits, inspections and any consultant fee. Ask for the cash needed at closing and what must stay in reserve. The CFPB Loan Estimate guide helps you read a written loan quote.
FHA 203(k) follows FHA mortgage-insurance rules, with upfront and ongoing costs. A conventional renovation loan may have mortgage insurance too. The CFPB mortgage-insurance guide explains how that cost works. Ask for the full payment rather than compare rates alone.
Ask about funds for unexpected work, where you will live and what bills you will pay while repairs are under way. Agree on dates with the lender and contractor before relying on a move-in plan. A renovation loan involves more review than a repair quote alone.
This option can cover eligible non-structural work, such as paint, flooring or minor kitchen updates. The total rehabilitation cost limit is $75,000, including applicable fees and reserves. A smaller budget does not make structural work eligible. A HUD-approved consultant is optional. HUD’s Standard and Limited comparison explains the difference.
Standard can cover eligible larger projects and structural repairs. Rehabilitation costs must be at least $5,000, and a HUD-approved 203(k) consultant is required. It does not use Limited’s $75,000 ceiling, but the mortgage, value and project rules still limit the loan.
HomeStyle can combine eligible work with a purchase or refinance. For a purchase, renovation costs may be up to 75% of the lower of the price plus renovation costs or the appraised value after work. For a refinance, the ceiling is 75% of completed value. Manufactured homes have a separate 50% rule. These are repair-cost calculations, not percentages you can borrow without review. Fannie Mae’s HomeStyle rules explain the calculation.
For an FHA 203(k) home purchase, plan to live in the home. The property and work must fit the program; eligible condo work is limited to the unit’s interior. Ask the lender about the home before signing a work contract. HomeStyle can also allow eligible one-unit second homes or rentals. Fannie Mae’s HomeStyle eligibility guide explains home-use and project limits.
FHA mortgage limits depend on the county, loan year and number of units. A repair allowance is not the total loan limit or the home’s purchase-price cap. Use HUD’s county and unit lookup to check the property. Our South Carolina FHA 203(k) guide explains the program in more detail.
The lender holds the repair funds and releases payments under the approved plan. Inspections and completion checks may be needed before money is released. Ask how changes to the work must be approved. Do not assume you can change the budget or receive the unused money as cash.
| Loan choice | What to compare |
|---|---|
A home ready to move into | Compare the finished cost, closing date and upkeep of a home that needs less work. A lower price for a fixer-upper does not always mean a lower total cost. |
Keep your mortgage and compare home equity | If you own the home, compare a home equity loan or line of credit with replacing your mortgage. Look at fees, payment changes and the risk of adding debt secured by your home. The CFPB home-equity guide explains the choices. |
The people behind your next step
Beaufort Lending is a mortgage broker in Port Royal, helping buyers across South Carolina. We shop loans from wholesale lenders, then help you compare payments and closing costs. Our team explains your choices in plain words and helps you see what fits your budget. From your first questions to closing, you have people to turn to for help.
His guidance made every step feel manageable, even when the situation changed quickly.
Easy to communicate with, always available to answer any questions and provided a seamless experience.
Gracie went above and beyond to make my home loan process smooth and stress-free after my previous lender kept delaying my closing.
A refinance-and-renovate option may fit. It replaces the current mortgage and includes approved work. Compare the new loan’s total cost with keeping your mortgage and using another way to pay for repairs.
You can propose a contractor, but the lender needs to review the contractor and work before approval. Ask about local licensing and any records the lender needs before signing an agreement.
Ask the lender before planning on your own labor. Program and lender rules differ. Do not count on being paid for your time or use a do-it-yourself plan before it is reviewed.
Talk with the lender and contractor before changing the work or budget. Ask how extra costs would be covered, what approvals are needed and whether the plan still fits the loan.
Spending a dollar on repairs does not promise a dollar of added value. Compare the price or current loan, work budget and full payment without counting on an equity gain.
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Benji Gecy, NMLS #302188 · Beaufort Lending, NMLS #1703543 · Equal Housing Lender
