Not every home that's right for you looks move-in ready on day one. Renovation loans let you finance the purchase (or refinance) of a home along with the cost of improvements, all wrapped into a single mortgage rather than juggling a separate loan for renovations.
This can open up homes that other buyers pass over — and let you shape a property to fit your life instead of settling for what's already finished.
Key Benefits
One Loan, One Closing
Combine purchase price and renovation costs into a single mortgage rather than separate financing.
Options for Purchases and Refinances
Whether you're buying or already own the home, renovation financing may be available.
Broad Scope of Work
From cosmetic updates to structural repairs, many types of renovations can typically be included.
ADU Potential
Some renovation programs can also be used to add an Accessory Dwelling Unit, subject to program guidelines.
Eligibility at a Glance
- Renovation plans and contractor bids are generally required as part of the loan application.
- The after-renovation value of the home is typically used in underwriting, not just the current value.
- Funds for renovation work are usually disbursed in draws as work is completed.
- Program availability and scope vary by lender and loan type.
How It Works
A Quick Conversation
We'll talk through your goals, income, and timeline to see how a renovation loan fits your plans.
Pre-Approval
Once we've gathered your documents, you'll get a clear picture of what you can qualify for — so you can shop with confidence.
From Offer to Closing
I'll guide you through underwriting, appraisal, and closing, keeping you informed at every step.
Frequently Asked Questions
Can I use a renovation loan for a fixer-upper?
Often, yes — renovation loans are frequently used for exactly this purpose, letting buyers purchase a home below market value and finance the improvements.
Do I need to have a contractor lined up already?
Typically yes, since contractor bids and a renovation scope of work are usually part of underwriting.
Can I use this to add an ADU?
In some cases, depending on the specific loan program and local zoning — worth discussing directly given how much this varies by property.
What's the difference between a renovation loan and a HELOC for remodeling?
A renovation loan is typically based on the home's value after improvements are complete, which can allow for more borrowing power than a HELOC based on current equity alone.
How is the loan amount determined for a renovation loan?
Lenders generally base the loan amount on the projected after-renovation value of the home, supported by contractor bids and an appraisal, subject to program guidelines.