Renovation & Construction Financing
Finance the Home You Want to Build or Renovate
Whether you're buying a fixer-upper, remodeling your current home, or building from scratch — we have the right loan product to fund your vision from blueprint to move-in.
Talk To An ExpertWhat Are Renovation & Construction Loans?
Renovation and construction loans are specialized mortgage products that combine the cost of purchasing (or refinancing) a property with the funds needed to improve or build it. Instead of taking out a separate personal loan or home equity line, these products roll everything into one manageable mortgage — often at lower interest rates and with tax-deductible interest. Funds are held in escrow and released to contractors on a draw schedule tied to verified project milestones.
Loan Types We Offer
Choose the product that fits your project scope and financial profile.
FHA 203(k) Loan
Government-backed renovation loan that bundles purchase and rehab costs into one mortgage. Available as Standard (major structural work) or Limited (cosmetic upgrades up to $35,000).
Fannie Mae HomeStyle
Conventional renovation loan with flexible guidelines. Finance up to 75% of the as-completed appraised value — ideal for higher-end renovations or investment properties.
Construction-to-Permanent
One-time close loan that covers land, construction costs, and converts to a permanent mortgage at completion — saving you from two separate closings and duplicate fees.
Fix-and-Flip Financing
Short-term bridge loans for investors purchasing distressed properties to renovate and resell. Fast approvals, asset-based underwriting, and flexible draw schedules.
ADU Construction Loans
Finance the construction of an Accessory Dwelling Unit on your existing property. Add rental income potential or multigenerational living space with purpose-built ADU financing.
Scope of Work Loans
Loans structured around a detailed contractor scope of work and draw schedule. Funds are released in stages as inspections confirm completed milestones.
Renovation vs. Construction: What's the Difference?
Understanding which category your project falls into determines the right loan structure.
| Factor | Renovation Loan | Construction Loan |
|---|---|---|
| Purpose | Improve or repair an existing structure | Build a new structure from the ground up |
| Loan Type | FHA 203(k), HomeStyle, HELOC | Construction-to-permanent, land + build |
| Draw Schedule | Milestone-based draws from escrow | Phase-based draws tied to inspections |
| Timeline | 3–9 months typical | 9–18 months typical |
| Down Payment | As low as 3.5% (FHA 203k) | Typically 10–20% |
| Appraisal Basis | After-improved value | Plans & specs / as-completed value |
Eligible Improvements
Most permanent improvements that add value or livability qualify. Here are common examples:
Who Is This For?
Renovation and construction loans serve a wide range of borrowers.
Homebuyers Eyeing a Fixer-Upper
Purchase a below-market property and finance the renovation in one loan — no need for a separate construction loan after closing.
Existing Homeowners
Tap your equity or refinance to fund a major renovation without depleting savings or taking on high-interest personal loans.
Real Estate Investors
Fix-and-flip or BRRRR strategy investors who need fast, flexible capital with draw schedules aligned to project milestones.
Custom Home Builders
Individuals building a primary residence or vacation home on land they own or are purchasing simultaneously.
Key Benefits
One Loan, One Closing
Combine purchase and renovation costs into a single mortgage — one set of closing costs, one monthly payment.
Finance As-Completed Value
Borrow against the future improved value of the home, not just its current condition — unlocking more purchasing power.
Flexible Contractor Options
Work with licensed contractors of your choice. We help coordinate the draw schedule and inspection process.
Ready to Start Your Project?
Our renovation and construction loan specialists will walk you through every option, help you understand scope of work requirements, and get you to closing faster.
Talk To An Expert