Renovation
- Home
- Loan Options
- Renovation
- Conventional Renovation
Conventional Renovation Loan
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)
Reasons to choose a conventional renovation loan
Combines purchase/refinance and renovation costs into a single conventional mortgage with one monthly payment, avoiding separate loans, multiple closings, or high-interest options like HELOCs, personal loans, or credit cards —so you can tackle fixer-uppers without draining your savings.
30-year conventional renovation guidelines
To qualify for a conventional reno loan, you will need:
Apply for a conventional renovation loan
Renovation funds can be used for primary residences, second homes and investment properties (1-unit)
No, however, you are able to obtain a 3% seller credit, which may be sufficient to cover substantially all of your closing costs. Closing cost credits can be up to 6% with a 10% down payment
On a typical conventional purchase or refinance, Scout Advisors can close in as little as 14 days. With a renovation loan, we suggest a minimum of 45 days (60 days is ideal) to allow sufficient time to shop contractors and to obtain renovation approval.
Typically work should be completed within 12 months
Eligible improvements are for the healthy & safety, kitchens, baths, additions, etc, but can also be used for luxury upgrades (kitchens, bath remodels), accessory dwelling units, pools, landscaping and structural upgrades.
Generally no—must use licensed contractors (FHA-approved where required). Limited DIY may be allowed for very minor items in some cases, but most work requires professionals. No full owner-builder labor credit for the loan
