why our team loves renovation loans
We love renovation loans for small updates or major overhauls. This loan lets you shop beyond move-in ready homes and gives you the funds to create the home you want, without a second loan or credit card debt.
Renovation Loans At A Glance
Renovation loans help buyers and homeowners bake home improvement costs into their mortgage. From roof replacements to kitchen makeovers, they can help finance large-scale renovations.
Highlights
- Finance Improvements Upfront: Roll renovation costs into your mortgage at the time of purchase or refinance.
- Works With Several Loan Types: FHA, conventional, and VA options.
- One Loan, One Payment: You won’t need a separate construction loan, HELOC, or personal loan.
- Available for Purchases or Refinances: Improve a new home or upgrade your current one.
- Use It How You Want Covers cosmetic updates, structural repairs, energy upgrades, and more.
- Appraised After Repairs: Loan is based on the after-renovation value, not the home’s current condition.
Renovation Loan Guidelines
- Occupancy: Primary residence required for most programs; second home and investment eligibility varies.
- Eligible Properties: Single-family homes, condos, townhomes, and select 2 to 4-unit properties.
- Project Scope: Cosmetic and structural repairs.
- Loan Based On: After-repair value (ARV), not current appraisal value.
- Draw Process: Renovation funds released in phases based on work progress.
- Timeframe: Projects typically must be completed within 6–12 months of closing.
- Contractor Approval: Requires a licensed, vetted contractor bid.
Renovation Loan Pros
- Expand Your Search Radius: Shop beyond move-in ready properties.
- Boost Home Value: Improvements are built into your mortgage and equity.
- Streamlined Financing: One closing and one monthly payment.
- Flexible Use: From new flooring to full kitchen remodels.
- Great For First-Time Buyers: Especially when paired with grants or incentives to help reduce total cash to close.
Best for…
Homeowners who want to renovate instead of relocate
First-time buyers who want a renovation budget baked into their mortgage
Borrowers who want to build equity through smart home improvements
Clients considering multigenerational living or adding square footage to their existing home
Free Guides & Resources
Our favorite kind of buyer? A confident one. Brush up on your loan knowledge, get an accurate quote, and let's get to it.
