You want a renovation loan, where the construction costs are financed into the mortgage based on the home's after-repaired value. The two common versions are the FHA 203k and Fannie Mae's conventional HomeStyle. Which one fits depends on your credit, down payment, and the property, so price both. The closing process is normal at the front and back and different in the middle: - Front and back: making the offer, opening escrow, signing loan docs, and wiring your down payment all work like any purchase. - The middle: you will need a contractor to provide bids, and the appraiser values the home in its finished, post-renovation condition, so they need the full scope of work to do that accurately. Whether the countertops are quartz or laminate, whether there is an outdoor kitchen, all of it feeds the after-repaired value. Because of those extra steps, plan on a longer escrow, often around 45 days rather than a standard timeline. Build that into your offer so you are never promising the seller a close date you cannot hit. Confirm current program requirements with your lender, since renovation-loan rules change.