Renovation
Can you finance the renovation into the purchase or refinance?
A renovation loan rolls the cost of repairs or updates into your mortgage, either as part of a purchase or a refinance, so you are not financing the work separately at a higher rate. It is built for homes that need work before or after you move in, from cosmetic updates to a full structural rebuild.
The house it could be
Renovation financing exists because the house you can afford and the house you actually want are not always the same house on day one. Rolling the renovation cost into the loan changes that math.
Instead of buying a finished home at a premium, or financing repairs separately on a credit card or personal loan, a renovation loan wraps the construction cost into your mortgage at your mortgage rate. The lender bases the loan on what the home will be worth once the work is done, not just what it is worth today.
This comes up constantly on the older housing stock around San Marcos and Kyle, where the bones are good but the kitchen or the roof needs real work. It also works on a refinance if you already own the home and want to fund an update without a second loan.
Quick facts
- Down payment
- Varies by loan type, similar to a standard purchase or refinance
- Credit guidelines
- Generally 640+
- Typical timeline
- Typically 45 to 60 days given the appraisal and scope review
- Occupancy
- Primary residence, most commonly
What it usually takes
- A contractor's estimate or bid for the work being done
- An appraisal based on the completed value of the home
- Standard purchase or refinance documentation, income and credit
- A realistic scope, this works best for defined projects, not open-ended wish lists
Guidelines vary by lender, and I shop across more than 40 of them. Missing one of these is a reason to talk, not a reason to assume the answer is no.
This is not a commitment to lend. All loans are subject to credit approval, income and property verification. Rates, terms, and programs are subject to change without notice. Nook Lending is powered by MPA Home Loans. Jennifer Ferrara, Loan Officer, NMLS #2781982. MPA Home Loans NMLS #2778343. Equal Housing Opportunity.
Jennifer Ferrara
Loan Officer · NMLS #2781982
Fourteen years navigating real estate deals taught me to listen before I recommend anything. Tell me what you're working with, and let's talk it through.
Where I Lend
Licensed throughout Texas, and I speak Spanish. Don't see your town? Ask, I am probably still in reach.
Cities I specialize in:
Kyle, TX · Buda, TX · San Marcos, TX · South Austin · Dripping Springs, TX · Driftwood, TX
See all service areasIs this loan right for you?
This fits if
Buyers eyeing a home that needs work, and homeowners who want to fund an update without a separate loan at a higher rate.
Look elsewhere first if
If the home is already move-in ready, or your renovation budget is small enough to cash-flow directly, a standard loan is simpler.
Pros
- One loan and one closing instead of a mortgage plus a separate renovation loan
- Based on the home's value after the work is done, not before
- Works on both a purchase and a refinance
Cons
- Requires a contractor bid and a defined scope of work
- Longer timeline than a standard purchase or refinance
- Not every wholesale lender on the panel offers it
Questions people actually ask
About Renovation
Yes, that is exactly what a renovation loan does. The loan is based on what the home will be worth once the work is complete, so you are not paying cash out of pocket for repairs on top of your down payment.
Other options
Worth comparing against
Very few files have exactly one right answer. These are the ones that most often come up alongside this.
First-Time Homebuyer
Anyone buying their first home, or buying again after several years away from ownership.
Conventional
Buyers with solid credit who want the lowest long-run cost and want mortgage insurance to eventually go away.
FHA
Buyers rebuilding credit, carrying more debt than conventional allows, or working with a small down payment.
Jumbo
Buyers in the higher price bands, often self-employed professionals and move-up buyers.
Reviewed by Jennifer Ferrara, NMLS #2781982 · Last updated 2026-08-11
Wondering if Renovation is right for you?
Send me the specifics and I will tell you what actually fits. If a different program serves you better, that is what I will say.