Renovation & Remodeling Loans
Whether your project is large or small, we’re here to help finance your vision.
Connect With A Loan OfficerTurn the home you have into the home you want
A renovation loan lets you borrow money for home improvements and roll it into your mortgage, all in one loan. Instead of taking out a separate home equity line of credit or personal loan after you move in, you finance everything together from the start.
This works whether you’re buying a home that needs some work or improving the one you already own. And because the loan is based on the home’s value after the improvements are made, you may be able to borrow more than you’d expect.
First Heritage Mortgage offers several renovation loan programs to fit different needs and budgets — including options for first-time buyers, move-up buyers, and investors.
Common Types of Renovation Loans
We offer a number of loan options that cover minor changes to major rehabilitation, all included in one mortgage payment.
Conventional Renovation Loans
Save time and money by financing the purchase or refinance of a home plus the cost of improvements into a single loan. With as little as a 5% down payment, you can make necessary repairs or add your own style with projects like a new kitchen or bathroom, energy efficient upgrades, or luxury features like a pool or sauna.
Benefits Include:
- 5% minimum down payment for owner-occupied primary residences
- Second or vacation homes and investment properties are also eligible
- Cosmetic and structural renovations allowed
- Loan amount based on “as-completed” appraised value of the home
- Popular option for investors purchasing fixer-uppers
FHA 203(k) Renovation Program
The Federal Housing Administration (FHA) offers loans specifically for renovation. FHA 203(k) loans are designed to help borrowers finance home repairs plus the purchase or refinance of a primary residence. These loans allow a variety of home improvements and feature as little as 3.5% down payment plus low closing costs.
Additional benefits of the FHA 203(k) Program include:
- Flexible qualifying criteria
- Different options allow for projects ranging from small cosmetic repairs to major remodeling and structural renovations
- Mortgage +Plus℠ down payment protection coverage from First Heritage
- Mortgage included at no additional cost on purchase transactions.
We offer two FHA 203(k) products to fit your needs: The FHA Standard 203(k) program and the FHA Limited 203(k) program.
Our FHA Standard 203(k) program provides flexible financing for major renovations to be made on a new or existing home. The minimum repair amount is $5,000, and there is no set limit for maximum cost of repairs.*
Our FHA Limited 203(k) program is designed to finance new and existing homes that can be remodeled, repaired, or updated for $35,000 or less. There is no minimum renovation cost requirement, so even minor home improvements can be covered.
For more information on additional FHA 203(k) benefits and commonly financed projects, connect with one of our experienced loan officers today!
Jumbo Renovation Financing
If you’re planning a major renovation project such as a full addition, or already know the value of your home is above the conforming loan limit in your area, we can help.
A construction loan is a temporary line of credit that covers the cost of building a home or completing a major renovation project. With a construction loan, funds are paid by the lender to a contractor — not the borrower — as construction project milestones are reached. After construction is complete, the loan is either converted to permanent financing or paid in full.
Whether you need one-time or two-time construction loans, our experienced team will guide you through each and every step of your process.
Learn more about construction loans for jumbo renovation financing.
Renovation Loan FAQs
Nearly any home improvement qualifies: kitchen and bathroom remodels, room additions, new flooring, roofing, plumbing and electrical updates, energy-efficient upgrades, and more.
Yes, licensed contractors are required for renovation loans. Your loan officer can explain what documentation you'll need from your contractor.
Yes. Many renovation loans can be used on a refinance, allowing you to roll improvement costs into your existing mortgage.
Your loan is based on the home's value after the renovations are complete, not just what the home is worth today. This often means you can borrow more than you might expect.
The Right Loan for Where You're Headed
FHA 203(k) Renovation Loans
A government-backed renovation loan with a low down payment and flexible credit requirements.
Construction Loans
Build your custom home from the ground up with flexible one-time or two-time close options.
Bridge Loans
Buy your next home before your current one sells — without the stress of juggling two mortgages.
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Your best home is one renovation away
You don’t have to settle for almost perfect. With a renovation loan from First Heritage Mortgage, you can finance the home improvements you want, and move in with a house that already feels like yours.
Connect With A Loan Officer