Awasome Can Home Loans Include Renovation Costs References. The loan amount is limited to just 80% of your home’s value. 10 rows quite simply, a renofi loan allows you to purchase your new home with a traditional mortgage.

Higher closing costs (between 2% and 5% of the loan amount). A 203(k) loan is the ideal solution if you wish to include your renovation costs into the mortgage. You cannot increase your loan amount, so be careful that your contractor does not underestimate costs.