Can you finance cosmetic updates or only structural work?

You can finance both. Renovation loans are not limited to foundation repairs or roof replacements. They can also cover the updates that make a house livable and comfortable for your family.

A Limited 203k is built for smaller and more cosmetic projects. That can include new flooring, paint, kitchen cabinets, countertops, bathroom updates, windows, doors, and light fixture upgrades. These are the jobs that refresh a house without major structural changes.

A Standard 203k covers those same cosmetic items plus bigger work. That can include a new roof, electrical updates, plumbing, HVAC, moving walls, adding a bedroom or bathroom, pools, outdoor kitchens, and other major improvements needed to meet lender standards or improve the home.

The key rule is that the work should improve the home and support financing. Health, safety, and required repairs come first. Then you can usually include the upgrades that make the house work for your daily life.

There are still items that generally cannot be included. Tennis courts, saunas, hot tubs, and other luxury recreation features that do not help the house function as a primary residence are usually not allowed.

If you want a mix of necessary repairs and nicer finishes, a renovation loan can often cover both in one package. Talk with your lender and HUD consultant early so you know which version fits your project and which items can and cannot be included.