Renovation loan for triplex

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Renovation loan for triplex

Nana SefaPro Member
Member since 2023 · 35 posts · 12 votes

I am looking for lenders with products that can finance a renovation loan for a triplex. Looking for a product that can finance both the purchase and the Reno. Any recommendations? Thank you. 

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  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    11mo

    Do you own it or are you looking to purchase. If you don't own it already, can you do a FHA 203K loan?

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  • Samuel Awosolu
    Lender · Florida / Georgia · Member since 2025 · 58 posts · 28 votes
    11mo
    Quote from @Nana Sefa:

    I am looking for lenders with products that can finance a renovation loan for a triplex. Looking for a product that can finance both the purchase and the Reno. Any recommendations? Thank you. 

     Hello Nana,

    Depending on if its your primary residence or investment property can determine the best  loan product for your situation.

    If this is your primary residence you can use one of these loan products:

    1. Fannie Mae HomeStyle Renovation Loan

    Property types: 1–4 unit primary homes, second homes, and even investment properties (more on that below).
    Down payment: As low as 3–5% for primary homes.
    Loan-to-Value (LTV): Based on after-repair value (ARV), not the current "as-is" value.
    Uses: Cosmetic and structural renovations — kitchen/bath remodels, additions, landscaping, roofing, etc.
    Benefit: You can even include luxury upgrades like pools or outdoor kitchens.

    2. FHA 203(k) Loan

    Property types: 1–4 unit owner-occupied homes only.
    Down payment: As low as 3.5%.
    Credit score: Usually 620+ (some lenders may go lower).
    Two versions:
    Limited 203(k): Up to $35,000 for non-structural repairs.
    Standard 203(k): For major renovations, structural repairs, or room additions.
    Benefit: Flexible qualifying; perfect for first-time buyers who find “fixer-uppers.”

    Now if you are using this as an investment property you can use one of these loan types:

    1. Fannie Mae HomeStyle ( Investor Version)

    Property types:     1–4 unit investment properties.
    Down payment: Minimum 15–20% for investors.
    Uses: Ideal for long-term investors who want to buy and hold renovated rentals.
    Benefit: Conventional financing rates with renovation flexibility.

    2. DSCR ( Debt Service Coverage Ration) + Renovation Loans

    Property types:     1–4 unit investment properties, often held in LLCs.
    Down payment: Usually 20–25%.
    Underwriting: Based on property’s cash flow (not personal income).
    Uses: For light to moderate rehab that boosts rent or value.
    Benefit: No personal income verification — great for investors scaling portfolios.

    3. Fix-and-Flip Loans

    Property types:     1–4 unit investment properties.
    Down payment: 10–20% of purchase + rehab costs.
    Loan term: 12–18 months.
    Uses: Short-term financing for renovations and resale.
    Benefit: Fast closings, minimal documentation, and flexible on credit.

    To get the best use from one of these loan products will be based on how you plan to acquire the property ( Primary residence or Investment). Hopefully this helps.

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    • Kate Nixon Taylor
      Lender · Cary, NC · Member since 2021 · 122 posts · 29 votes
      11mo

      Hi Nana,

      I am with The One Brokerage and we have hundreds of lenders I can shop for you to make sure we find the best product. Let's connect and talk over your scenario. I would be happy to help you with your financing strategy and answer any questions.

      Cheers! Kate

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    • Stacy RaskinBusiness Member
      Lender · Member since 2022 · 1k+ posts · 497 votes
      11mo

      is this an investment property where you are not living there? If so, there are lenders that can finance up to 90% of the purchase price and 100% of the renovation budget (done on draws for the reno budget). The options depend on the state you're in and your credit. Happy to discuss further. 

      [email protected]818-770-0340
      Bright Skyline518 Reviews
      WebsiteView Page
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    • Frankie VozziBusiness Member
      Member since 2025 · 335 posts · 82 votes
      11mo

      Hey Nana great question. You’re exactly in the space where renovation + acquisition financing can make a lot of sense.

      We work with investors using  products that roll the purchase + rehab costs into one package — especially for multifamily or triplexes.

      I sent you a DM! let's connect!

      [email protected]516-888-7750
      0Reply
    • Reginald TrussPro Member
      Lender · Toledo, OH · Member since 2015 · 1k+ posts · 96 votes
      11mo

      I can help with purchase and renovation on a triplex. For investor use, I typically place these as a rehab/bridge loan that can cover up to ~85% of purchase and up to 100% of the rehab (max leverage set by ARV). If you're planning to house-hack/owner-occupy, there are primary-res programs that can also wrap the reno.

      Shoot me the basics and I’ll tell you in 2 minutes which lane fits: address, purchase price, rehab budget, ARV, experience, credit ballpark, and timeline. If it’s a go, I’ll outline terms and next steps. —Reginald (Loan Father)

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