Renovation Loans

What is a Renovation Loan?

A Renovation Loan is a mortgage product that allows home buyers to make a house their home, and allows home owners to build out their dream home, do renovation work, or make their homes more energy efficient.

Some common uses for renovation loans are large scale projects that would be difficult to pay for in one lump sum - new roofing, energy efficient upgrades to windows and appliances, adding or removing rooms, or updating bathrooms or a kitchen.

There are many different renovation products depending on the qualifications or a borrower and property, as well as the work needing to be completed.

Renovation Loan FAQ

What is a "Streamline" Renovation Loan?

Some renovation loan products are called "Streamlined" products - this refers to the scope of work to be done or the dollar amount to be spent. Streamlined renovation loans often serve lower dollar amount projects, cosmetic upgrades, and non-structural projects.  "Full" renovation projects like Fannie Mae's Homestyle or FHA 203k loan tend to offer financing for larger projects.


Is the Renovation Mortgage Process Complicated?

If you're working with a good, experienced loan officer ( those at MasonMac!), the renovation loan program is not a difficult process.  There are extra steps that go beyond what other loan products require - things like contractor bids, draw schedules, and other moving parts that a good loan officer can guide you through.

Overall, the renovation mortgage loan process isn't all that different than any other mortgage loan process, with just a few extra steps that a good loan officer will be able to explain in detail.

What Work Can Be Done With a Renovation Loan?

The type of work that can be done with renovation loans depends on the loan program - there are specific renovation loan programs for things like energy-efficient items, and others for basic cosmetic upgrades.  Some have limitations on work - for example, many "Streamlined" renovation products don't allow structural work (changing load bearing walls, additions, foundation fixes, etc).  Other programs have a broad scope of work allowed.

Ask a MasonMac loan officer to see if your project would qualify for financing under the renovation loan program.



Mason-McDuffie Mortgage Corporation

2430 Camino Ramon
Suite 300
San Ramon CA. 94583

Phone: 925-242-4400
Fax: 866-743-0260
Toll-Free: 877-ASK-MMMC (877-275-6662)


Licensed by the Department of Business Oversight
under the California Residential Mortgage Lending Act. NMLS# 1141
NMLS Consumer Access Site