3 Home-Renovation Loans You Need To Know

By Bryan David

Bryan David is one of the best REALTORS® serving Ocean Springs, Biloxi, Gulfport and the entire coast. He is a Biloxi native, military veteran and retiree, and a multi-year top-producing agent with hundreds of satisfied clients.

Have you been searching for the perfect home but come up empty-handed? Does everything on the market feel like a total letdown? You’re not alone. Many buyers feel stuck, especially when faced with “as-is” homes that seem impossible to love.

But what if I told you there’s a way to turn one of those “fixer-uppers” into your dream home? Let me introduce you to renovation loans—the ultimate game-changer for frustrated homebuyers.

A renovation loan lets you buy a home in its current condition—no matter how rough—and finance the repairs or upgrades right into the loan. This means you can turn an “as-is” property into exactly what you want. Here’s how it works:

• You find a home and make an offer.
• A licensed contractor submits a bid for the work you want done.
• An appraiser calculates the home’s value after the renovations.
• You close on the loan based on that “after-renovation” value.
• The contractor completes the work, and the lender finalizes the loan.
• It’s a simple way to build your dream home without waiting for the perfect listing to pop up.

Renovation loans open doors—literally and figuratively. Many sellers list homes as “cash-only” because they can’t or won’t make repairs. With a renovation loan, you can buy these overlooked properties, fix them up, and live in the neighborhood you’ve been dreaming about. Here are a few options:

• FHA 203(k) loan: With just 3.5% down, you can finance repairs and even borrow up to 110% of the appraised value. It’s perfect for first-time buyers.
• VA renovation loan: For veterans and active-duty military, this offers 100% financing for primary residences.
• Conventional home style loan: A conventional loan that works for both homeowners and investors. It’s ideal for building rental property portfolios.

Renovation loans take a bit longer to process, and you’ll need licensed contractors to do the work. Most lenders won’t allow DIY renovations. But the benefits far outweigh these minor hurdles, especially if you’re serious about creating your dream home. If you have more questions about renovation loans, feel free to call or text me at 228-215-1861. Let’s talk about how you can transform any property into your dream home.