What Is a Renovation Loan?

A renovation loan, also known as a home improvement loan, is a type of mortgage that covers both the cost of buying a home (or refinancing an existing one) and the expenses needed for repairs, upgrades, or remodeling.

Unlike traditional mortgages, which are based on the home’s current value, renovation loans consider the future, post-renovation value. This makes it possible to finance improvements that increase your property’s worth and livability.

Who Can Benefit from a Renovation Loan?

Renovation loans are ideal for:

• Buyers purchasing a fixer-upper or outdated home
  
  
• Homeowners looking to remodel, expand, or modernize without moving
  
  
• Sellers who want to boost home value before listing
  
  
• Families planning energy-efficient upgrades, accessibility features, or custom improvements
  
  

If you want to improve a home instead of moving—or make a newly purchased property move-in ready—renovation loans provide the financial flexibility to do so.

Popular Renovation Loan Options

FHA 203(k) Loan

• Backed by the Federal Housing Administration
  
  
• Allows as little as 3.5% down
  
  
• Covers major renovations or smaller projects up to $35,000
  
  
• Ideal for buyers with lower credit scores or limited savings
  
  

Fannie Mae HomeStyle® Renovation Loan

• Best for borrowers with stronger credit
  
  
• Finances home purchase and renovations based on after-renovation value
  
  
• Supports larger projects like room additions, luxury upgrades, or energy-efficient improvements
  
  
• Available for primary residences, second homes, and investment properties
  
  

VA Renovation Loan

• Available to eligible veterans and active-duty military
  
  
• Combines VA mortgage benefits with renovation funds
  
  
• No down payment required and competitive rates
  
  
• Perfect for making older properties move-in ready or customizing a newly purchased home
  
  

What Can You Use a Renovation Loan For?

Renovation loans can fund a wide range of improvements, including:

• Kitchen and bathroom remodels (cabinets, countertops, fixtures)
  
  
• Flooring, roofing, and HVAC, plumbing, or electrical upgrades
  
  
• Room additions, garage conversions, or accessibility features
  
  
• Energy-efficient improvements like insulation, windows, or solar panels
  
  

Essentially, any improvement that adds value, functionality, or comfort to your home may qualify.

The Renovation Loan Process

1. Consultation & Pre-Approval – Review your goals, finances, and renovation plans to select the best program.
   
   
2. Home & Contractor Selection – Work with a licensed contractor to outline the scope and costs of your project.
   
   
3. Appraisal Based on Future Value – An appraisal determines your home’s after-renovation value.
   
   
4. Loan Closing & Construction – Funds are held in escrow and released as work is completed.
   
   
5. Final Inspection & Completion – Ensure everything is finished properly and on schedule.
   
   

Windward Mortgage guides you through every step, making the loan process seamless and your renovation successful.

Why Choose Windward Mortgage for Renovation Loans?

• Access to FHA, VA, and conventional renovation programs
  
  
• Personalized guidance tailored to your financial situation
  
  
• Fast approvals and responsive communication
  
  
• Expertise in financing both simple upgrades and large-scale home transformations
  
  

Whether you’re updating a kitchen, adding a room, or purchasing a home with potential, we help you make it happen.

✅ Ready to Renovate Your Home?

Discover how a renovation loan can help you transform your space and increase your home’s value. Windward Mortgage is here to guide you through every step.

📞 Contact us today for a free consultation or apply online to get started!