Renovation loans
Capital for improving an investment property, from cosmetic updates to substantial rehabilitation, generally funded through a documented budget and draw process.
- Loan size
- $500K – $5M
- Property
- 1–4 unit residential
- Occupancy
- Non-owner occupied
- Capital
- Private & alternative
How renovation loans work
Renovation financing may be structured as part of an acquisition loan or as a standalone loan on a property already owned. Renovation funds are often held back at closing and released in draws after completed work is verified by inspection.
Capital sources typically review the contractor, the line-item budget, permits where required, and the projected post-renovation value. The more complete the scope and budget, the more precisely the financing can be structured.
Commonly used for
- Rehab of a property you already own
- Purchase plus renovation in one loan
- Value-add improvements ahead of a refinance or sale
What lenders look at
- Line-item renovation budget and scope
- Contractor and permit status
- Projected post-renovation value
- Draw process and inspection schedule
Rate, leverage, fees and term depend on the deal and the lender. All loans are subject to lender underwriting and approval.
Questions
Do you finance fix-and-flip projects?
Yes. Fix-and-flip financing is one of our core areas. Requests are evaluated on the purchase price, the renovation budget and scope, the projected after-repair value, and the borrower’s experience with similar projects.
What information do I need to submit?
To start, our financing request form asks for the property address and type, purchase price or current value, requested loan amount, loan purpose, renovation budget if any, your experience, an approximate credit range, and your timeline.
If the transaction moves forward, lenders commonly request items such as a purchase contract, a scope of work and budget, entity documents, bank statements, a schedule of real estate owned, and leases or rent rolls for rental properties. Exact requirements vary by lender.
What determines loan terms?
Terms are set by the lender, not by us, and reflect the full transaction: loan amount and leverage, property type, location and condition, the business plan and exit, the borrower’s experience, credit, and liquidity, and prevailing market conditions.
Rates, fees, loan term, and other conditions vary by transaction and lender. Any terms are subject to lender underwriting and final approval.
How quickly can financing close?
Timing depends on the transaction, the lender, and how quickly items such as the appraisal, title, insurance, and borrower documentation are completed. Private financing can often move faster than conventional bank lending, but no closing date can be guaranteed.
If you are working against a contract deadline, tell us the date when you submit the request so it can be factored in from the start.
Have a deal in mind?
Tell us the property, the price, and what you need. An advisor will call you back to talk it through.