Renovation Loans
Renovation loans allow borrowers to finance both the purchase price of a home and the cost of its renovation through a single mortgage. This is perfect for buying properties that need repairs or updates. On this page, visitors can learn about the types of renovation loans available, the process for application, and the benefits of combining home purchase and renovation costs into one loan.
Loan Requirements
- Buy or Refinance options
- Min credit score 620
- Maximum cost of renovations up to 75% of the “as-completed” appraised value of the property
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What kinds of renovations can be financed with a renovation loan?
Most types of home improvements can be financed, including structural repairs, modernizations, and energy-efficient upgrades.
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How does the disbursement of funds work for renovation loans?
Funds are typically disbursed to contractors in stages based on the completion of predetermined phases of the renovation.
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Are renovation loans more expensive than standard mortgages?
They can have higher interest rates and fees due to the additional risk and complexity of funding renovation projects.
