Home / Loan options / Renovation
Renovation loans.
Buy the house and fund the work in one loan, based on what the property will be worth when the work is done.
Buy it and fix it
Why this exists
An ordinary mortgage lends against what a house is worth today. That makes the house that needs a new roof and a kitchen impossible to buy for anyone without cash on hand — which is exactly the house that is priced to sell.
A renovation loan lends against the appraised value after the planned work. The purchase and the construction budget are financed together, and the funds for the work are held and released to the contractor in stages as it is completed.
What to expect
- A licensed contractor and a written scope of work before closing — not after
- An appraisal that values the finished property, based on those plans
- Inspections as the work progresses, tied to each release of funds
- A longer timeline than a standard purchase. Plan for it rather than being surprised by it.
Line up your contractor early. The most common cause of delay on a renovation file is waiting on a scope of work and a bid. Everything else moves at normal speed.
Find out what you qualify for.
A licensed loan officer reviews what you send and tells you where you stand, in writing. No cost, and no obligation to go further.