Renovation Loan Products

A Renovation Loan is a special type of mortgage that lets you buy or refinance a home and finance the cost of improvements all in one convenient loan.

Whether you’re purchasing a fixer-upper or upgrading your current home, a renovation loan gives you the funds you need to repair, remodel, or modernize your property while spreading the cost over time with one monthly payment.

How a Renovation Loan Works

With a renovation loan, your home’s projected “after-renovation” value is used to determine how much you can borrow. That means you can roll the purchase price and renovation costs into a single mortgage saving time, effort, and money.

Renovation loans are available as both fixed-rate and adjustable-rate mortgages, with terms typically ranging from 15 to 30 years.

You can use the funds for a wide range of projects, including:

  • Kitchen or bathroom remodels

  • Roof or flooring replacement

  • Energy-efficient upgrades

  • Structural repairs

  • Room additions or expansions

  • Accessibility improvements

Benefits of a Renovation Loan

One Loan, One Closing

Combine your home purchase or refinance and renovation costs into a single mortgage—with one application, one closing, and one monthly payment.

Increase Home Value

Renovations can boost your home’s market value and long-term equity.

Flexible Project Options

Use funds for minor repairs, major remodels, or modernization projects customized to your needs.

Competitive Interest Rates

Enjoy lower rates compared to using credit cards or personal loans for home improvements.

Available for Purchase or Refinance

You can finance upgrades when buying a new home or improving your existing one.

Types of Renovation Loans

There are several loan options depending on your needs and qualifications:

FHA 203(k) Loan

Backed by the FHA, this option offers low down payments and is ideal for buyers with limited savings or lower credit scores.

Fannie Mae HomeStyle® Renovation Loan

A conventional option for those with stronger credit, allowing for a wide range of home improvements—including luxury upgrades.

VA Renovation Loan

Available to eligible veterans and service members, combining VA loan benefits with funds for approved home repairs or upgrades.

Things to Consider

  • Project Approval: Renovations must typically be completed by a licensed contractor and approved by the lender.

  • Detailed Estimates Required: Lenders will require a written scope of work and cost breakdown before closing.

  • Timelines: Projects usually must be completed within 6 to 12 months of closing.

  • Inspections and Draws: Funds are released in stages as work is completed and verified.

Is a Renovation Loan Right for You?

A renovation loan may be a great fit if you:

  • Want to buy a home that needs work

  • Plan to remodel or repair your current home

  • Prefer one loan instead of separate financing for improvements

  • Want to increase your home’s value and comfort