Renovation Loans for Fixer-Uppers & Upgrades

Some of the best opportunities in California and Georgia need a little work—or a lot. Renovation loans are designed to finance both the purchase (or refinance) and the cost of improvements in one mortgage, instead of juggling separate financing.

This page explains how renovation loans work, when they may be useful, and what to consider before choosing one.

What Is a Renovation Loan?

A renovation loan rolls the cost of approved repairs or improvements into your mortgage. Instead of paying cash for the work or taking out a separate loan, you can:

• Finance the home based on its “after-improved” value (subject to guidelines and appraisal)
• Work with contractors and draw schedules to complete the work
• Make one mortgage payment that includes both the property and the renovation costs

We’ll compare this structure to alternatives like a standard purchase plus later refinance, home equity financing, or personal loans.

Common Renovation Use Cases

Renovation loans may be helpful when:

• The home needs repairs to meet livability or safety standards
• You want to update kitchens, baths, flooring, or major systems soon after closing
• You’re buying a dated home in a strong neighborhood and want to modernize it
• You want to add value before a future sale or refinance

For some homeowners, a renovation loan can be a bridge to later equity-building options such as cash-out refinances.

Renovation Loans in California & Georgia

In the markets I serve, renovation needs range from cosmetic updates to significant repairs. Examples include:

• Older homes in Oceanside and North County San Diego that need modernization
• Properties in Riverside County and San Bernardino County with deferred maintenance
• Metro Atlanta homes where layout or finishes need updating

We’ll review:

• Your purchase price or current value
• Planned renovation budget and scope of work
• After-improved value expectations
• Whether renovation financing or staged projects with other loan types make the most sense

Renovation Loan Considerations

When evaluating a renovation loan, it’s important to understand:

• Additional documentation and contractor requirements
• Appraisal based on after-improved value
• Draw schedules and timelines for the work
• Potential impact on closing timelines

In some cases, a standard loan plus a later home equity loan or line (see Home Equity Loans & HELOCs) may be simpler. In others, a renovation loan is the most efficient path.

Next Steps: Renovation Financing Strategy

If you’re considering a fixer-upper or upgrading your current home, we can:

• Review your renovation scope and budget
• Compare renovation loan structures to other options
• Coordinate with your real estate agent and contractor where needed