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Renovation Loan
A Renovation Loan is a mortgage option that covers both the purchase price of a home and the cost of renovations in a single loan. This financing solution is ideal for homebuyers looking to purchase a fixer-upper or homeowners who want to upgrade their property without taking out a separate loan. By combining home purchase and renovation costs, buyers can secure a single mortgage with streamlined payments while increasing the home’s value. If you’re considering buying and renovating a home, a renovation loan could be the perfect way to finance your project.
A Reliable Home Loan You Can Trust.
All-in-One Financing
Combines the home purchase or refinance with renovation costs, simplifying the process.
Increase Property Value
Funds improvements that can boost your home’s resale value and functionality.
Lower Interest Rates
Offers rates lower than personal loans or credit cards typically used for renovations.
Flexible Property Options
Available for single-family homes, multi-family units, and some investment properties.
Loan Guidelines
If your details are near these guidelines, we encourage you to apply or reach out. Even if you don’t qualify for a 30-year fixed-rate mortgage, we may have other options available.
The Home
Purchase a new home or refinance your current mortgage.
Credit Profile
A credit score above 620 is typically required.
Debt-to-Income
Your debt-to-income ratio (DTI) should be under 50%.
Closing Costs
Along with your down payment, you’ll need sufficient funds to cover closing costs.
Explore Your Potential
Our calculators help you understand and visualize your options
Mortgage Calculator
Planning to buy a home? Calculate your estimated monthly payments, including taxes and insurance.
Refinance Calculator
Considering refinancing your mortgage? Find out how much you could save.
Frequently Asked Questions
Have questions? We’ve got answers! Explore our FAQ section to find helpful information about loans, refinancing, and more. If you don’t see what you’re looking for, feel free to contact us—we’re here to help!
Who are Renovation loan best for?
Renovation Loans are ideal for homebuyers or homeowners looking to purchase or refinance a property while including the cost of repairs or improvements in the loan. They are great for those who want to upgrade a home without using separate financing for renovations.
How do Renovation loan work?
Renovation Loans combine the purchase price (or existing loan balance) with renovation costs into one mortgage. The lender provides funds based on the home’s after-renovation value. Borrowers typically submit plans and estimates for the renovations as part of the approval process, and funds are disbursed in stages as work progresses.
What are pros and cons of a Renovation loan?
Pros:
- Combines home purchase/refinance and renovation costs into one loan.
- Lower interest rates compared to personal or home improvement loans.
- Improves the home’s value and functionality.
Cons:
- Requires detailed renovation plans and estimates.
- Longer approval process due to additional documentation.
- Funds are often disbursed incrementally, requiring progress inspections.
Can I use a Renovation Loan for any type of property?
Renovation Loans can be used for primary residences, second homes, or investment properties, depending on the loan type. However, certain loan programs, like FHA 203(k), may have restrictions on property types and use.