What is a renovation loan?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
A renovation loan combines the purchase (or refinance) and the cost of improvements into a single mortgage, sized on the home's projected after-renovation value. The FHA 203(k) and Fannie Mae HomeStyle are the main options.
Funds are released to contractors as work is completed. It turns a dated home into your dream home with one loan. We'll help you scope the budget and choose the right product.
Purchase plus repairs
A renovation loan combines the cost of buying a home and fixing it up into a single mortgage. Popular options are the FHA 203(k) and the conventional HomeStyle loan.
You borrow against the home's expected value after the renovations, so you can improve a property without a separate loan.
When it makes sense
Renovation loans are great for fixer-uppers, dated homes, or adding value to a property. The lender manages the repair funds and releases them as work finishes.
We guide you through the whole process. Reach out and we will see if a renovation loan fits your plans.