Renovation Loans

Innovation through renovation!

What is a Home Renovation Loan?

Home renovation loans are a novel way to finance home improvement projects. These loans typically take the form of a mortgage with added funds for home upgrades. They can be used for projects of virtually any size, from remodeling a kitchen, to knocking out the walls to create that perfect open floor plan for entertaining.



If you're considering the purchase of an older home that needs some work, looking to make repairs to your existing property, or just looking to do some improvements to your home, a renovation loan could be the right solution for you. 

How Do Home Renovation Loans Work?

Let your home's value do the work for you. If you have equity in your home, renovation loans allow homeowners to borrow against the future value of their homes with higher loan-to-value allowances than other forms of mortgage financing such as HELOCs (Home Equity Lines of Credit), home equity loans, or cash-out refinances.

Typically, the amount you can borrow is determined by the cost of the renovation or the home's estimated value after the renovation.

Depending on the type of loan, you may need to show proof that the money was spent on the house or paid to a contractor in furtherance of that goal.

 

Renovation Loans for Home Repairs

In the aftermath of a weather-related disaster, many homeowners are confronted with another nasty surprise when they find out what damage is and is not covered by their homeowners insurance.

Homes that have been damaged by natural disaster may not be eligible for typical financing options. Our rehab loans can be used to buy a house or fund repairs or improvements.

 

Renovation Loans for Home Upgrades

Has working from home changed how you use your living space, and you need a proper home office? Or are you making changes to your home to age-in-place or make your home more adaptable so that an aging relative can move in? You can fund upgrades and home remodeling projects of virtually any scale with our renovation loan options. 

 

Fixer Upper Loans: Purchase and Renovate in a Single Renovation Mortgage Solution

If you’ve fallen in love with a house that just perfectly fits your style, but it needs a little (or a lot!) of TLC, a fixer-upper loan can offer you the money you need to buy the home AND complete a renovation. With a renovation mortgage you can finance the cost of the home purchase plus extra as cash-out to fund the work you want to do on it. Instead of waiting to fix up the home, you can begin updating immediately with the funds from the mortgage. Pay for it all with the low rates of a monthly mortgage payment over the life of your loan.

 

Use a Cash-Out Refinance from a Renovation Loan to Finance Home Improvements

If you already own a home and want to give it a facelift, you can use a renovation loan to get cash-out to fund your project. Whether you need to fix a problem, like leaky pipes or an old roof, or just want to update a kitchen, the renovation mortgage can help. With this option, you refinance your home for more than it’s currently worth and get cash-out to use toward your home improvements. 

 

What Can You Use a Renovation Loan For?  

While you can only make approved improvements with your renovation loan, the list is pretty big. Below are a few common updates that a renovation mortgage can help you make. Speak to your loan officer to find out if your project can be funded with a renovation loan!

  • Remodel the kitchen or bath
  • Renovate or add a room
  • Paint the house or add siding
  • Add a porch, deck or patio
  • Replace a leaky roof
  • Conserve energy with new windows
  • Put in new flooring, carpeting or tile
  • Update electrical wiring, plumbing or heating systems
  • Conserve energy with new windows
  • Plus much more!

Don’t wait until it’s too late! With a renovation loan from RoundPoint Mortgage Servicing Corporation, you can use your home’s current equity and projected value to complete your home improvement plans today, without having to dip into your savings.