Home Renovation Loan Benefits & How They Work
Renovation loans offer flexible financing tied to your home’s increased value once improvements are finished. Perfect for upgrading your existing home or purchasing a property with renovation potential, they help you build the ideal living environment you desire.
Why a Renovation Loan Could Be Right for You
Renovation loans let you include the price of improvements in your mortgage from the start, giving you just one predictable monthly payment. Great for turning a fixer-upper into your dream home or enhancing the one you already call home.
Conventional Reno
Allow you to finance both the purchase (or refinance) of a home and its renovations in a single mortgage, with the loan amount often based on the property’s estimated value after improvements are complete. Financing up to conventional loan limit ($832,750 in NC)
FHA Reno
Backed by the FHA—let you finance both the purchase (or refinance) of a home and its repairs/renovations in a single mortgage. The loan amount is typically based on the property’s estimated value after improvements (“after-improved value”). Financing up to FHA county loan limit ($541,287 in NC)
VA Reno
VA loans are for eligible Veterans, active-duty service members, and qualifying surviving spouses in purchasing, (or refinancing) of a home and its necessary repairs/improvements in a single VA-guaranteed mortgage. Limited to $50k in repairs
Fix and Flip
Fix and flip loans (also called hard money loans) are short-term loans designed for real estate investors. They fund the purchase of a distressed or undervalued property plus the renovation costs, with repayment typically coming from selling the improved home for a profit
