New mortgage with $ for Renovations?

[MBOhio2]

I understand from some initial research that there are two main options for getting financing for both the purchase of a home and significant renovations - the FHA 203(k) and the Fannie Mae Home Style. I am trying to understand if there are any other options for us. Two main questions:

1) Are these really the only two options for having the renovation $ baked into your mortgage? AND

2) Any recommendations for have two seperate loans - the initial mortgage loan for the property and a non-mortgage loan for the renovations?

I just do not know all of the options our there and the pros/cons of the different options, so I'm hoping someone can education me - thanks SO MUCH in advance.

Here's more about our situation:

- Credit scores in the low 700s, but could possibly get them above 740 before we move forward on this, but that's not a guarantee, so we're looking for options under both credit score scenarios;

- Price of the properties that we're looking at range from $250,000-$350,000 and we would plan to spend the balance up to $500,000 on the renovations (so between $250,000 and $150,000 on renovations) for a total spend of around $500,000;

- We expect the final value of the home after the renovations would be around the $500,000 mark of our total expenses;

- FHA maximum for our area is $316,000 so the 203(k) won't work for us because we need more money than the maximum FHA limit;

- Will have about $150,000 cash from the sale of our current home, which can be used for down payment, some of the renovations, etc.

- Combined annual income between myself and spouse of about $225,000

[Anonymous]

FHA 203k and HomeStyle are the two most popular ones. You can contact local banks and the big box ones for any kind of special programs they may have. If you want 2 separate loans, then you can get a regular mortgage and then take a personal loan behind that. Having the renovation put into the renovation put into the mortgage saves money out of pocket and gets you a lower interest rate than a personal loan would get you. There's HELOC and equity loans but I don't know if you'd have enough equity in the home to borrow against it immediately. Sounds like HomeStyle would be you're best option.