Renovation Loans: Finance the Home and the Improvements

Found the right home, but it needs some work? A renovation loan may allow you to finance both the purchase of a property and eligible improvements with a single mortgage rather than paying for renovations entirely out of pocket after closing.

Renovation financing can be useful for homes that need kitchen or bathroom updates, flooring, roofing, electrical or plumbing work, HVAC improvements, accessibility modifications, repairs, or larger remodeling projects. Depending on the loan program, financing may be based partly on the property's expected value after the planned improvements are completed.

As a mortgage broker with access to more than 160 lending sources, I can review renovation loan options based on your property, project, credit profile, down payment, and overall financial situation. Programs and requirements vary, including eligible improvements, contractor requirements, appraisals, inspections, and how renovation funds are distributed.

A home that needs repairs doesn’t necessarily have to be crossed off your list. Before walking away from a property because of the work it needs, let me review the project and determine what renovation financing options may be available.