Many homes have untapped potential—whether it's a dated interior, needed repairs, or space that no longer works for today’s lifestyle. Renovation loans offer a powerful way to finance both the home and the improvements in one simple mortgage.
This type of financing can be used when buying a new home or refinancing an existing one, and it's designed to make the renovation process more accessible, efficient, and cost-effective.
What Is a Renovation Loan?
A renovation loan combines the cost of a property with the funds needed for repairs or upgrades. Instead of managing separate loans or relying on personal savings, everything is rolled into a single mortgage. This approach streamlines the process and allows improvements to begin soon after closing.
Why Renovation Loans Matter
Renovation loans can be a smart solution in a variety of scenarios—when a property needs work, when inventory is tight, or when a homeowner wants to customize a space rather than move. These loans also help bring older homes up to modern standards, creating value for individuals and communities alike.
What Can Be Included?
Renovation loans cover a wide range of projects—from cosmetic updates to essential repairs. Here are just some of the eligible improvements:
Available Options
There are several types of renovation loans available, including:
- FHA-based options, often used for primary residences with different tiers for light and more extensive renovations
- Conventional programs, which offer flexibility for a wider range of property types and renovation needs
- Products for second homes and investment properties, available under certain guidelines
Each loan type has unique features based on the scope of the project, the type of property, and the intended occupancy.
A More Flexible Path to Homeownership
With a renovation loan, a property that needs work can become a perfect fit. These programs expand possibilities—not just for where people can live, but for how they can shape their environment to reflect personal needs and long-term goals.
Find a house you like….
Create a home you love!
Program availability and eligibility requirements vary. Not all borrowers will qualify. Contact a mortgage professional for full details.
Prosperity Home Mortgage, LLC is not affiliated with any government agencies. Some and/or all qualifying criteria may be set by independent third-party program sponsors. Not all borrowers will qualify. Contact your mortgage consultant for program eligibility and details.
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