Renovation Loans
Renovation loans allow homebuyers and homeowners to finance improvements alongside a purchase or refinance, combining the cost of the property and the planned upgrades into a single mortgage.
How Renovation Loans Work
Rather than taking out a separate personal loan or line of credit for renovations, a renovation mortgage rolls the improvement costs into one loan with one monthly payment. The lender typically bases the loan amount on the projected value of the home after improvements are completed.
Common Uses
Kitchen and bathroom remodels, roof replacement, HVAC upgrades, structural repairs, accessibility modifications, energy-efficiency improvements, room additions, and cosmetic updates are among the most common projects financed through renovation lending.
Who Benefits
Renovation loans can be a strong fit for buyers purchasing a home that needs work, homeowners looking to upgrade an existing property, or investors acquiring properties that require improvements before they can be rented or resold.
What to Expect
The process typically involves getting contractor bids, an appraisal based on the planned after-renovation value, and a draw schedule where funds are released as work is completed and inspected. Timelines and documentation requirements can vary depending on the scope of the project.
Renovation financing options, eligibility, and terms vary based on the loan program, property type, and borrower profile. Speak with the mortgage team to explore which structure fits your project.