Renovation / Rehab
Buy it and fix it with one loan.
Renovation financing rolls the purchase price and the improvement budget into a single long-term mortgage, based on the value of the home after the work is complete.
What makes this loan different
- One loan, one closing, one payment
- Qualifies on the post-renovation appraised value
- Available on primary residences and investment property
- Structural and cosmetic work both eligible
Who this is built for
- Buyers of dated homes in great locations
- Owners financing a major remodel
- Investors holding rather than flipping
Why after-repair value matters
A renovation loan is appraised subject to completion, meaning the value used is what the home will be worth once the work described in your plans is finished. That is what allows you to finance improvements that exceed your current equity.
Agency renovation products and Non-QM versions both exist. The agency options price better; the Non-QM versions are far more flexible on scope, timeline, and borrower documentation.
The process
A licensed contractor bid, a plan and specification review, a post-completion appraisal, and an inspection-based draw schedule. Expect a slightly longer closing timeline than a standard purchase.
What lenders typically ask for
- Detailed scope of work with a line-item budget
- Contractor bids, licensing, and insurance
- An appraisal reflecting as-completed value
- Permits, or evidence that permits will be obtained
- Standard income, credit, and asset documentation
Requirements vary by lender and by file. This is a general picture of what is commonly requested, not a checklist for a specific loan.
Worth knowing
The contractor has to clear the lender, not just the borrower.
Many programs require the contractor to be approved, licensed, and insured to the lender's standard. A trusted contractor who cannot or will not complete the lender's paperwork stalls the project.
Changes to scope require re-approval.
Mid-project change orders generally have to go back through the lender before the related draw releases. Budgeting a contingency, and expecting the administrative step, prevents work stopping.
Permits sit on the critical path.
Municipal timelines are outside everyone's control and are a frequent source of delay on renovation financing.
Draws and inspections add time.
Each stage involves a request, an inspection, and a release. A project planned as though funds are available on demand will run short.
See what this program would take in your case.
We are brokers — this program is shopped across hundreds of wholesale lenders, not quoted off one rate sheet. A short application gives us enough to compare real options.
Program availability, terms, guidelines, and documentation requirements vary by lender and are subject to underwriting and change without notice. This is not a commitment to lend.