Combine Purchase and Renovation
Qualification Based on Future Home Value
Escrowed Funds for Renovation
Variety of Loan Programs
Customization Without the Upfront Cost
Maximize Property Potential
Increase Home Value
Streamlined Expense Management
frequently asked
questions
What is a renovation loan?
A renovation loan allows you to finance both the purchase of a home and the cost of repairs or upgrades in a single loan. This can be helpful if you are buying a fixer-upper.
Who qualifies for a renovation loan?
Eligibility depends on your credit, income, and debt-to-income ratio. Renovation loans are designed for borrowers who want to purchase a home that needs repairs and have the financial ability to manage the project.
Do renovation loans require an appraisal?
Yes, the appraisal considers both the current value of the home and the expected value after renovations. This helps determine the loan amount you can qualify for.
What documents are needed for a renovation loan?
Along with standard income and asset documents, you’ll need estimates or bids from licensed contractors. Lenders require detailed plans to approve the financing.
How long does a renovation loan process take?
Renovation loans often take longer than standard loans, sometimes 45 to 60 days, because of the extra steps needed to review project plans and contractor bids.