Construction & Renovation Loans
Build from the ground up, buy a home that needs work and fix it right away, or finance your own building and flipping projects. I’m a construction and renovation loan specialist, and I’ll walk you, your builder and your agent through every draw and every step.
Start with the problem
Tell me what’s in the way. There’s usually a loan built for it.
Each option below starts with something I hear from clients all the time, followed by the loan that solves it. Programs are offered through Edge Home Finance’s network of lenders and are subject to qualification and property eligibility.
“WE CAN’T FIND THE HOUSE WE WANT!!”
You’ve toured every listing and nothing fits. Maybe you have a lot picked out, a set of plans, or just a clear picture of the home you want. What you need is financing built for new construction.
One-Time-Close Construction Loan
Financing for ground-up construction of your new home, with the land included if needed, and one closing from start to finish. The loan converts into a standard mortgage when construction is complete.
- Finances ground-up construction
- Land purchase can be included in the construction loan
- One-time close to lower your closing costs
- Quick pay on builder draws
- Low down payment options available
- Converts to a standard mortgage upon completion
“I’M A BUILDER AND I WANT TO BUILD MY OWN HOMES OR PROPERTIES!”
You have the land, the plans and the crew. Now you want to build your own homes or properties instead of only building for someone else.
Builder-Financed Construction Loans
Construction financing for builders, covering the material and labor costs of building new single-family or multifamily properties, with interest-only payments during construction.
- Builder finances the construction of the project
- Single-family and multifamily units
- High loan-to-cost financing available
- Interest-only payments during construction
- Owner-occupied residential developments, investment properties and commercial owner-user projects
- SBA loan options may be available
“THE HOUSE I LOVE IS BEAT UP OR NEEDS IMPROVEMENTS!!”
You found the right home in the right neighborhood, but it needs a new roof, a new kitchen or a lot more. Paying for the house and the renovation separately isn’t realistic.
Renovation Loans
Renovation loans finance the home and the improvements together, based on the home’s future value with the renovations completed. Options include FHA 203(k) and Fannie Mae HomeStyle® Renovation loans.
- Based on the home’s after-renovation value
- Renovation costs bundled into the mortgage
- FHA 203(k) and Fannie Mae HomeStyle® options
- Low down payment options available
- Home doesn’t need to pass inspection at closing
- Pools, roofs, kitchens, room additions and more
“I WANT TO FLIP HOMES!”
You see the opportunity in a property that needs work, and you need short-term financing to buy it, renovate it and sell it.
Fix and Flip Loans
Short-term financing for experienced investors to purchase and renovate properties for resale, with interest-only payments and financing based on the project’s total cost.
- For investors with previous flip or build experience
- Interest-only payments
- No income documentation necessary
- Short-term loans
- Financing based on the total project cost
- Cash to close and reserves required
“WE WANT TO BUY OR BUILD, BUT WE HAVEN’T SOLD OUR CURRENT HOME!”
You’re ready to buy or build your next home, but most of your money is tied up in the home you live in now.
Bridge Loans
Bridge loans are short-term loans that bridge the gap between the purchase of a new property and the sale of an existing one, giving you temporary financial liquidity.
- Short-term financing using your home equity
- Secure the new home before selling the old one
- Useful in competitive markets or when immediate capital is needed
- Qualification based on credit, equity in the current home and income
- Existing and projected finances are both assessed
Construction & renovation process
What to expect from application to move-in
Construction and renovation loans get more review up front than a standard purchase, because the lender is financing a home that isn’t finished yet. Here’s how it usually goes.
- Talk through the planBudget, timeline, land or property, and which loan fits: one-time-close, renovation, builder financing, fix-and-flip or bridge.
- Plan reviewThe construction plans and specifications (or the renovation scope) are reviewed along with the contract.
- Cost estimatesYour builder or contractor’s detailed cost breakdown is reviewed so the budget matches the work.
- Builder credentialsThe builder’s license, insurance and experience are verified before closing.
- Appraisal on the finished homeThe property is valued as if the work were complete, based on the plans and specs.
- Close and drawAfter closing, funds are paid out in stages (draws) as work is inspected and completed, so the builder gets paid as the job moves forward.
- Finish and convertWith construction-to-permanent financing, the loan becomes a standard mortgage at completion. Stand-alone construction loans are paid off or refinanced after the build.
Construction loan options at a glance
Construction-to-permanent (one-time close): one loan and one closing covers the build and then converts to your long-term mortgage.
Stand-alone construction: a short-term loan for the build only, paid off or refinanced into a permanent mortgage when the home is complete.
Renovation loans: FHA 203(k), which bundles renovation costs with the primary mortgage, and Fannie Mae HomeStyle® Renovation, which covers a wide range of improvement projects.
Builder construction loans: finance the material and labor costs of new homes a builder develops, repaid when the homes sell or are refinanced.
For builders, architects & contractors
Help more of your clients say yes to the project.
When a client loves your plans but can’t see how to pay for them, the right loan is often what gets the project started. I work with Central Florida builders, architects and contractors to line up financing early, keep draws moving, and keep everyone updated through completion.
- Quick turnaround on builder draws
- Clear updates for you, your client and their agent
- Options for ground-up builds, renovations, your own projects and investor clients
One-page sheets to share with clients
- One-Time-Close Construction Loan PDF
- Builder-Financed Construction Loans PDF
- Renovation Loans PDF
- Fix and Flip Loans PDF
- Bridge Loans PDF
Sheets describe loan types only. They aren’t a commitment to lend, and they don’t quote rates or terms.
Questions
Construction & renovation FAQ
Can I buy the land with the construction loan?
Often, yes. With a one-time-close construction loan, the land purchase can be included in the same loan as the build. If you already own the lot, your equity in it may count toward the project.
How do builder draws work?
Instead of paying the full amount at closing, the lender releases money in stages as work is completed and inspected. I keep an eye on draw requests so your builder gets paid quickly and the job stays on schedule.
Does the house have to pass inspection before I buy it with a renovation loan?
Not necessarily. Renovation loans are designed for homes that need work. The appraisal looks at what the home will be worth once the planned improvements are finished.
What kind of work can a renovation loan cover?
Common projects include roofs, kitchens, bathrooms, room additions, pools and system updates. Each program has its own rules about eligible work, so we’ll match your scope to the right one.
I’m a builder. Can you finance my own spec homes?
Builder construction loans can finance single-family and multifamily projects, including owner-occupied developments, investment properties and owner-user commercial projects. Approval depends on your experience, the project’s feasibility and credit.
All loans are subject to credit approval, underwriting guidelines, property eligibility and program availability, which can change. This page describes loan types and does not quote rates, terms or down payment amounts. Not an offer to lend. Larger commercial projects: see RCCLoans.com.