Buy the fixer. Finance the fix. One loan.
Roll the purchase price and renovation costs into a single mortgage instead of scrambling for a second loan after closing.
Overview
You found a house with good bones but dated everything. Or it needs real work. New roof. Updated systems. A full kitchen gut. Renovation loans let you finance the purchase and the rehab together in one mortgage, based on the projected value after improvements.
That means you can buy a property other buyers are passing on and finance the work to make it exactly what you want. One loan. One closing. The contractor gets paid through a draw process as the work gets completed and inspected.
These loans have more moving parts than a standard purchase. Contractor bids. Inspections. Draw schedules. Consultant involvement on bigger projects. That's exactly why you want one person coordinating everything.
Key Details
How I Handle This
I look at the property and the scope of work first. Determine whether it's a limited or standard fit. Review contractor bids. Price the loan. Then manage the draw process once the work starts.
The coordination between you, the contractor, the inspector, and the lender is where these files get complicated. I keep it organized so the work doesn't stall waiting on money.
Questions I Get
What's the difference between limited and standard?
Limited covers smaller cosmetic projects under a set dollar amount. No structural work, no consultant. Standard covers big renovations including structural, additions, and full rehabs. Requires a HUD consultant.
Can I do the work myself?
Generally no. Most programs require licensed contractors. Some exceptions exist for non-structural work, but the vast majority needs professional contractors.
How is the loan amount determined?
Purchase price plus renovation cost, subject to program loan limits. The appraiser provides a projected "after-improved" value.
How long does the renovation need to be done?
Limited is typically about six months. Standard may allow up to a year. I set the timeline expectation at the start.
Found a diamond in the rough?
Send me the listing and a rough scope of work. I'll tell you whether a renovation loan makes sense for the deal.