Renovation Loan Resources

Renovation Loan Process

Found your dream home, but it requires a little extra work? If your heart is set on a fixer-upper but you don’t have the savings to cover both a down payment and a renovation, a renovation loan might be the best route for you. Click through the five steps below to learn more about the process to obtain a loan for the fixer-upper of your dreams.

Step One

We’ll work closely with you to obtain all documentation within 7 days of the date of your application, ensure that it’s complete and accurate, and submit it to loan processing for review.

Step Two

A loan processor will review your documentation within 24 hours and complete that review within 2 days of receipt. The processor will then submit your loan to underwriting.

Step Three

Your loan will be assigned to an underwriter who will complete an initial review within 24 hours. If any conditions are required, your loan will be sent back to the processor to clear them and prepare for closing — all within 7 days of the underwriter’s initial review. Once complete, the loan will be sent back to underwriting for final review and approval.

Step Four

The underwriter will issue a clear to close (CTC) and assign the loan back to the processor who will inform all parties of the CTC, verify the closing date and time, and place the loan in the closing queue. The closer will have 24 hours to provide closing documentation to the settlement agent.

Step Five

You’ll attend the closing with your agent and sign all remaining documentation.

Renovation Loan Checklist

While you’re envisioning all the new appliances, sparkling new granite countertops, and fresh paint colors, the appraiser that evaluates your new home is inspecting certain things to ensure they meet HUD’s minimum property standards. Follow this checklist ahead of time to determine if these items need to be included in your repair list.

  • Exposed wiring
  • Chipped/peeling paint
  • Mold or mildew
  • Termite treatment
  • Windows open/close freely
  • Missing window screens
  • Inadequate caulking or weather-stripping
  • Missing electrical switches, outlets, or plates
  • Missing flooring or tiles
  • Damaged flooring
  • Missing built-in appliances
  • Missing bathroom fixtures
  • Water damage/water or dampness in basement
  • Missing handrails (3+ steps)
  • Remaining life of roof
  • Missing gutters
  • Soffit/fascia/siding damage
  • Utilities operational
  • Well/septic damage
  • Water heater (relief valve and proper strapping)

Home Renovation Guide

Our free guide to renovation loans provides all the information you need to understand the different financing options and requirements when considering home renovations.