Construction and Renovation loans

Why Choose a Renovation Loan?

Renovation home loans offer a smart, flexible way to upgrade your home without the hassle of multiple loans. Key benefits include:

• One loan, one monthly payment — Combine your purchase or refinance with renovation costs into a single mortgage.

• Faster access to funds — Begin renovation work shortly after closing, without delays.

• Flexible financing options — Choose from a variety of loan programs designed to fit projects of all sizes and scopes.

 

Jumbo Renovation Loan
Ideal for high-value homes, this loan finances large-scale renovations above conforming limits—perfect for luxury upgrades or major remodels.

FHA 203(k) Renovation Loan
Combines purchase or refinance with renovation costs.

• Standard: For structural and major repairs

• Limited: For smaller or cosmetic updates (up to 75K)

USDA Renovation Loan
Designed for eligible rural properties, this option bundles purchase and repair costs into one affordable USDA-backed mortgage.

VA Renovation Loan
Available to eligible Veterans and service members, this loan combines VA benefits with renovation financing in one monthly payment.

HomeStyle® Renovation℠
Flexible financing for a wide range of interior and exterior improvements, from cosmetic updates to structural changes.

Pool Escrow

Looking to add a pool? This financing option rolls the cost of pool construction into your home purchase or refinance. It’s available with both conventional and jumbo loans.

 

A construction loan allows homebuyers to finance the purchase of land and the cost to build a new home. Funds are released in scheduled draws to the builder as construction progresses, rather than all at once. Once the home is complete, the loan transitions into a traditional mortgage.

• Conventional Construction Loans
• Down payment: 5%–20% (based on occupancy and loan type)
• FHA Construction Loans
• Down payment: 3.5%
• USDA Construction Loans
• 0% down payment
• VA Construction Loans
• 0% down payment for eligible Veterans and service members

Conventional Construction Loans

Typical Guidelines

• Minimum credit score: 680–700+ (program dependent)

• Down payment: 5%–20% (based on occupancy and loan type)

• Primary, second home, and investment options available

• Flexible renovation and custom build options

• Higher reserves often required

• Best for strong credit and income profiles

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FHA Construction Loans

Typical Guidelines

• Minimum credit score: 580 (3.5% down)

• Down payment: 3.5%

• Primary residence only

• More flexible credit and debt ratios

• FHA-approved builder required

• Includes FHA construction-to-perm and FHA 203(k) renovation options

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VA Construction Loans

Typical Guidelines

• 0% down payment for eligible Veterans and service members

• Primary residence only

• No monthly mortgage insurance

• Flexible credit and income guidelines

• VA-approved builder required

• One-time close option available in many cases

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USDA Construction Loans

Typical Guidelines

• 0% down payment

• Property must be in an eligible rural area

• Household income limits apply

• Primary residence only

• USDA-approved builder required

• One-time close construction financing available

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Good to Know

• Builder approval is required on all construction loans

• Draw schedules are tied to construction milestones

• Appraisals are based on future (completed) value