Whether you’re building a new home from the ground up or renovating an existing property, Renovation and Construction Loans provide the funding you need. These specialized loans cover materials, labor, and other construction costs, offering flexible financing options to turn your vision into reality.
Renovation and construction loans are designed to finance the cost of home improvements, remodeling, or new home construction. These loans allow homeowners and buyers to upgrade, repair, or build properties with structured financing that releases funds in stages as work is completed.
These loans are ideal for homebuyers purchasing fixer-uppers, homeowners looking to renovate, and individuals building a custom home. Investors can also use these loans to rehab properties for resale or rental income.
Unlike traditional mortgages, renovation and construction loans provide funding in stages rather than a lump sum. Lenders disburse payments based on project milestones, ensuring that contractors and builders receive payments as work progresses.
Loan options include FHA 203(k) renovation loans, Fannie Mae HomeStyle loans, VA renovation loans, construction-to-permanent loans, and standalone construction loans. Each loan type has different requirements based on the scope of work, borrower qualifications, and loan terms.
These loans provide flexible financing for remodeling, home improvements, or new construction. Borrowers can increase their home’s value, customize their living space, and spread renovation costs over time instead of paying upfront.
If you’re looking to upgrade your home, purchase a fixer-upper, or finance a custom-built home, a renovation or construction loan may be the perfect solution. A mortgage specialist can help determine the best loan option for your project.
We specialize in renovation and construction loan solutions tailored to homeowners, buyers, and real estate investors. Whether you’re looking to remodel your home, buy a fixer-upper, or build a new property, our loan programs provide flexible financing options, competitive rates, and expert guidance.
From loan application to project completion, our mortgage professionals ensure a smooth financing process, working with trusted lenders and approved contractors to bring your vision to life.
If you’re ready to finance a home renovation or new construction project, contact us today to explore your options and take the next step toward your dream home!
Get clear answers to common renovation and construction loan questions, including how financing works for new builds and remodels, timelines and draw schedules, contractor requirements, appraisals, budgeting, and how to plan a smooth path from approval to completion.
Renovation and construction loans are mortgage options that help finance a new build, major remodel, or home improvement project. Instead of getting separate loans for the purchase and the work, these programs can combine costs into one financing plan. The loan structure is designed to support the project timeline while keeping the process organized and predictable.
A renovation loan is used to purchase or refinance a home and fund improvements, such as kitchens, bathrooms, additions, or repairs. A construction loan is used to build a home from the ground up, sometimes including land purchase. Both involve extra planning, documentation, and oversight compared to a standard mortgage because the property is changing during the process.
Construction loans often use a draw schedule, which means funds are released in stages as work is completed. Inspections or progress checks are typically required before each draw is paid. This protects the borrower and lender by confirming the project is moving forward as planned and helps keep the build on budget and on timeline.
Qualification depends on credit, income, assets, and the scope of the project. Lenders typically want to see stable income, a strong credit profile, and reserves to handle unexpected costs. You may also need detailed project documents, including plans, contractor bids, permits, and a clear budget. The stronger the paperwork, the smoother the underwriting.
Many renovation and construction loan programs require a licensed and insured contractor. Some programs may allow limited do it yourself work, but it is not common and usually comes with restrictions. Lenders prefer verified contractors because it reduces risk, supports accurate timelines, and improves the chance of the project being completed correctly.
Appraisals are often based on the after improved value, meaning the appraiser reviews the plans and budget and estimates what the home will be worth once the work is finished. This is different from a standard purchase appraisal. The appraisal helps confirm the final value supports the loan amount and that the project makes financial sense.
These loans typically take longer than a standard mortgage because they involve extra documents, contractor coordination, and underwriting review. Approval and closing timelines vary, and the construction or renovation phase can take months depending on the scope. A clear plan, realistic budget, and organized paperwork can significantly reduce delays and surprises.
