You fell in love with the patina of a 1920s Craftsman or a grand Buckhead Tudor, but the scope of work feels daunting. You are not alone. Restoring a character-rich Atlanta home takes vision, planning, and the right financing. This guide breaks down proven loan options, Atlanta and Georgia incentives, what lenders look for, and realistic costs so you can move forward with confidence. Let’s dive in.

The right loan for the job

FHA 203(k)

The FHA 203(k) wraps your purchase or refinance and renovation into one loan. The Standard option covers major work, while the Limited option fits smaller projects. HUD recently increased the Limited cap to 75,000 and updated certain flexibilities, which can help with moderate scopes. Owner occupancy and mortgage insurance are required, and the process uses a HUD consultant and draw inspections that add time. Learn more on the FHA 203(k) page at HUD.

Fannie Mae HomeStyle Renovation

HomeStyle Renovation is a conventional alternative that underwrites to the “as-completed” value after your improvements. It typically allows broad project types, including structural work, and requires completion within lender timelines, often 12 to 15 months. It avoids FHA mortgage insurance and is a good fit if you prefer conventional underwriting. See details on Fannie Mae’s HomeStyle Renovation.

Freddie Mac CHOICERenovation

CHOICERenovation also finances to the after-repair value and commonly allows renovation costs up to 75 percent of the as-completed value, with variations by property type. Some lenders offer streamlined options for smaller scopes, and occupancy flexibilities can include second homes or investment properties. Work usually must be finished within about 12 months. Explore the program in Freddie Mac’s CHOICERenovation FAQ.

VA renovation options

If you are eligible for VA benefits, some lenders offer VA renovation loans that bundle repairs into the mortgage. Availability and limits vary by lender, and contractors must meet VA requirements. This path can be attractive for low down payment buyers who can find a participating lender.

Construction-to-permanent loans

When a project is closer to a rebuild or a large addition that needs interim construction financing, a one-time-close construction-to-permanent loan can fit. Many renovation mortgages do not allow full tear-downs. Ask lenders which structure matches your scope and timeline.

Home equity and cash-out

If you already own the home and have equity, a HELOC, home-equity loan, or cash-out refinance can fund work quickly. These are often faster to close but may carry higher rates or add a second lien. The CFPB urges careful comparisons because cash-out refinances can increase costs and risk over time. Review their guidance on recent mortgage trends.

Georgia and Atlanta incentives

Federal historic tax credit basics

The federal 20 percent Historic Rehabilitation Tax Credit applies to certified historic structures used for income-producing purposes, like rental or commercial. Owner-occupied primary residences are not eligible. If you own a mixed-use property, only the income-producing portion can qualify. See eligibility on the National Park Service’s tax incentives page.

Georgia state historic tax credit

Georgia’s state program has a residential component and has been updated through recent legislation. Caps, eligible properties, and timelines are subject to change, and most projects require pre-certification with the State Historic Preservation Office at Georgia DCA. Confirm current rules directly with the DCA’s program update page before you plan your budget.

Atlanta COA and Urban Design Commission

If your home is locally designated, exterior work visible from the street typically requires a Certificate of Appropriateness. COA reviews affect permissible design details and timing, which can impact lender draw schedules. Build COA review and permitting into your project timeline. Read the code section on COA procedures.

Local grants, relief, and easements

Invest Atlanta coordinates owner-occupied rehab resources and tax relief initiatives that can help eligible homeowners manage costs. For example, the city has expanded senior tax relief and anti-displacement efforts. Start with Invest Atlanta’s Senior Tax Relief Program to explore potential options. Preservation easements, stewarded by local nonprofits, can also deliver long-term protection and potential tax advantages, though they require specialized counsel.

Plan for lender success

Do your due diligence first

Commission a structural and systems inspection and gather a detailed written scope with line-item contractor estimates. Include a 10 to 20 percent contingency to cover surprises. If you intend to pursue historic tax credits, begin the SHPO review early so your scope aligns with required standards.

Understand as-completed appraisals

Renovation loans rely on the home’s projected value after the work is done. Appraisers will review your plans, bids, and comparable renovated sales. In neighborhoods with few direct comps, they may rely more on cost approaches, so detailed documentation helps support value.

Expect draws, inspections, and oversight

Renovation loans disburse funds in draws after inspections. Standard FHA 203(k) requires a HUD consultant, and conventional programs also require oversight and contractor credentials. Lenders may require reserves if you cannot occupy during construction and will expect appropriate insurance during heavy work.

Time permits and reviews carefully

COA approvals and building permits are prerequisites for many scopes and can add weeks or months. Many programs require completion within about 9 to 15 months, so start design and permitting early. Align your lender’s draw schedule with your contractor’s milestones.

Costs and ROI in Atlanta

Expect higher costs for specialist trades, matched materials, and custom millwork that preserve character. National Cost vs. Value data shows exterior and curb-appeal projects tend to recoup a higher share of cost at resale than luxury interior remodels. Use this insight if you plan to sell soon. Explore regional patterns in the latest Cost vs. Value report.

Material and labor inflation has pushed remodeling costs higher in recent periods. Build robust contingencies and plan for longer lead times. Recent reporting highlights persistent construction cost pressures, which reinforces the value of strong budgeting and scope discipline. See context in this AP overview of rising construction costs.

Your restoration roadmap

• Define the vision and scope with a preservation-savvy architect or contractor, and gather line-item bids with a 10 to 20 percent contingency.
• Choose financing paths to price: FHA 203(k), HomeStyle, CHOICERenovation, VA options, or home equity. Ask each lender about completion timelines, draw schedules, and allowable costs.
• If pursuing incentives, begin federal and state pre-approvals with NPS and Georgia DCA before work starts.
• File for a City of Atlanta COA, then pull building permits. Sequence this with appraisal and loan timing.
• Prepare a lender-ready packet: plans, bids, schedule, insurance details, and occupancy plans during work.
• Track draws and costs tightly, and revise the schedule early if COA or material lead times shift.

Partner with a preservation-minded team

Restoring an Atlanta home with real character is a legacy project. You deserve clear financing guidance, hands-on oversight, and a network that respects the architecture. If you are weighing loan options or planning scope, let our team connect you with experienced lenders, architects, and builders and help you position the finished home for the right audience. Start the conversation with Michael Redwine.

FAQs

Can I use the federal historic tax credit on my Atlanta primary home?

• No. The federal 20 percent credit applies to certified historic structures used for income-producing purposes. Owner-occupied primary residences are not eligible. See the National Park Service’s overview.

What renovation loan works best for a major Atlanta restoration?

• It depends on occupancy and goals. FHA 203(k) suits owner-occupants who want government-backed underwriting. HomeStyle and CHOICERenovation offer conventional flexibility and underwrite to as-completed value, with timelines around 12 months. Review FHA 203(k), HomeStyle, and CHOICERenovation.

Will Atlanta’s COA process delay or block my financing?

• COA review does not block financing, but approvals are required for many exterior changes and can affect your schedule and lender draws. Start early and align design, permitting, and loan timelines. Read the city’s COA procedures.

How do appraisers set an as-completed value on a historic home?

• Appraisers review your plans, bids, and comps for similar renovated homes. When comps are scarce, they may rely more on cost approaches, so detailed documentation and realistic scopes help support value.

Are there local programs that reduce costs for Atlanta owners?

• Yes. Look into Invest Atlanta’s owner resources, including senior tax relief and anti-displacement efforts, plus Georgia DCA’s state historic tax credit and grant opportunities. Start with Invest Atlanta’s Senior Tax Relief Program and the DCA’s program update.