Top Seven Projects for a Renovation Loan

Tools for home renovation

It can be difficult to pay for repairs, which is why so many people choose renovation loans.

When an emergency repair, such as a leaking roof or cracked foundation, occurs in your home, it needs to be handled quickly. You simply can’t wait for the problem to get worse, but you may not have the savings to pay for repairs. Even if the issue isn’t an emergency, such as an outdated kitchen or dull landscaping, it may not be wise to use your savings on the project.

By turning to renovation loans, you can fix your home quickly; and it can usually be done without adding too much to your monthly costs.

Top 7 Uses for a Renovation Loan 

1. Repair the Roof

One of the most common uses for renovation loans is to repair or replace the roof. As any homeowner can tell you, it’s only a matter of time until shingles on your roof become worn and faded. They may start to peel, or wind through the years may have caused a leaky spot. Unfortunately, roof repair can cost thousands of dollars, and the larger your home, the more it will cost. With a renovation loan, you can ensure a dry roof over your head without digging into your savings account.

2. Energy-Saving Upgrades

Saving energy is a top priority for many homeowners. When you reduce the amount of electricity and gas that is used in the home, you not only reduce your monthly bill, you ensure a cleaner, healthier future for the planet.

Renovation loans can be used to fund a wide variety of energy-saving projects. For example, you can use the funding to purchase solar panels, which save on your overall electricity consumption. You can use the money to install better insulation, replace drafty windows, or even replace an old furnace with a high-efficiency model.

3. Foundation Repairs

When the foundation needs replacement, it is not a cheap or easy project, which means many people will need to borrow money to ensure it is completed properly. Foundation issues cause a lot of problems, including a sagging floor, problems with the roof, cracks in the walls, and the chance for water leaking into the home.

A bad foundation will also impact the overall value of your home while reducing curb appeal, which means you’ll have a harder time selling the house and get less money for it when you do. By using a renovation loan, you can fix the foundation to ensure a sturdy, reliable home for yourself or the next buyer.

4. New Addition

Feel like your home is getting too small? If you have a growing family or simply want to add more interior space, competing a new addition could be the right choice. New additions can increase the enjoyment of your home, and they can be used to create another bedroom, a home office, or simply expand the living room. New additions don’t come cheap, which is why many people use renovation loans on these projects.

5. Major Landscaping

Renovation loans can be used to add landscaping to your property

Are you getting the most out of your exterior space? If you want to enjoy your outside area a little more, perhaps some landscaping is on order. You can improve your exterior by adding a block walkway, planting shrubs and flowers, installing a retaining wall, or even building an outdoor fireplace. Renovation loans allow you to upgrade your exterior, which is a relatively affordable way for you to get the most from every square foot of your lot.

6. Kitchen or Bathroom Renovations

If you want to fully enjoy your home, you need to have an elegant, comfortable bathroom and kitchen. Nothing helps enhance a home’s overall appeal and enjoyment like new cabinets, new countertops, and new flooring. With a renovated kitchen or bathroom, you’ll not only get a great new look, you can also increase the convenience of these important and popular rooms.

According to many realtors, the most important rooms for selling a home are the bathrooms and kitchens. If you expect to sell your home in the near future, but are concerned about the quality of your kitchen or bathrooms, perhaps a renovation loan can help make your home more appealing to buyers.

7. Siding, Gutters, and Soffits

The materials on the exterior of your home often wear out the fastest. Siding can be cracked, gutters become weighted down, and soffit looses its previous luster. With a renovation loan, you’ll be able to improve these exterior materials, which are not only important to the structural quality of your home, but also impact the visual appearance.

Understand Your Renovation Loan Options

Think a renovation loan might be right for you? Then you’ll need to decide which one you should choose. Each will have different requirements, as well as projects that are allowed with the funding, but there are many options available to the typical homeowner.

For example, you could choose a conventional mortgage loan, which are generally allowed for non-structural home repairs that will add to the value of the property. You can also choose a jumbo renovation, which is used for high-priced homes that need high-cost renovations, such as the addition of a luxury kitchen that uses premium materials.

If you live in a rural or suburban area, you could take advantage of a USDA home repair loan. These loans are available to homebuyers who live in certain areas, and can be used to fund many projects, including appliances, foundations, roofing, windows, and more. These loans are available because the USDA has prioritized improving rural areas, so availability is based both on your income and where you live.

FHA 203(k) loans are another popular renovation loan. This program is open to homeowners with a lower credit score, and it is used for the purchase and renovation of a home. However, if you want to take advantage of this loan option, you may be able to refinance your current loan into a 203(k) program.

If you want to learn more about renovation loans, contact San Diego Purchase Loans today. We’ll help you find the right option for your specific project!



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Chad and his team have been a pleasure to work with. I’m a 3rd time home owner. Wish I had known Chad and team a lot sooner. He made my 3rd home purchase very easy. There were a lot of moving pieces and they handled with professionalism and care. Juliann was a pleasure to work with too. The whole team made it possible for us to move into our dream home. Thanks you Chad and Team!

When looking for a house, we had couple recommendations for a lender. After talking with all the lenders, many were difficult to work with and couldn’t get it done as quickly as we needed. I was referred to Chad Baker’s team and I am glad we did. Not only did they get the things done quickly for us, they were very easily to get ahold of. It wasn’t rare to get a response within 15 minutes whenever an email was sent. I could not express how friendly and outgoing this team is. And on top of that, they came back with the best offer for us amongst all the other brokers. I am glad I worked with these guys. If you are looking for a lender…MAKE SURE TO CALL CHAD BAKER AND TEAM!!! Thanks Chad for all your hard work. Next time we buy another house I am calling you first!

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