Turn Potential Into Property Value
Renovation loans allow you to finance both the purchase and improvements of a home in a single loan. Whether you're buying a fixer-upper or upgrading your current property, these loans simplify the process with one closing and funds set aside for repairs.
Highlights
Finances both home purchase and renovation costs in a single loan
Allows you to finance improvements upfront, adding value to your home
Offers flexible options for homes in need of significant repairs or upgrades
Typically requires an appraisal that includes the projected value after renovation
Can require a higher down payment or cash reserves for large-scale renovations
Choose Your Path
FAQ
How does a renovation loan work?
It combines the purchase price and rehab costs into one mortgage, disbursed in stages as work is completed.
Can I use this loan for a primary, second home, or investment property?
Yes, eligibility depends on loan type (FHA 203(k), Fannie Mae HomeStyle, or private renovation loans.
What renovations qualify?
Structural repairs, kitchen/bath remodels, roof replacements, HVAC upgrades, accessibility improvements, and more.
Can I do the work myself?
Most programs require licensed contractors. DIY work is rarely approved unless properly documented and permitted. However, there are other loan strategies to consider for a DIY renovation, such as a Heloc or Cash-Out refinance.
Are renovation loans harder to close?
They require more paperwork, including contractor bids, inspections, and draw schedules, but are very manageable with an experienced broker like Murray Mortgage Solutions.
Renovation loan VS Construction
There is often a fine line between the two based on the condition of the property. Generally speaking, if the home already has a foundation and you're renovating an existing structure, it's a renovation loan.
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Disclaimer: Information provided is for educational purposes only and is subject to change. All loan programs, interest rates, down payment requirements, and terms are subject to credit approval, underwriting guidelines, investor requirements, and may change without notice. Not all applicants will qualify. Restrictions may apply, including but not limited to geographic limitations, property type, and occupancy requirements.