Transforming Your Home: Understanding the Power of Renovation Loans

Renovating your home can be an exciting yet daunting prospect. While home improvements often increase property value and provide a better living environment, the costs can be substantial. This is where renovation loans can make all the difference.

What Are Renovation Loans?

A renovation loan is a mortgage that covers both the purchase price of a home as well as the costs of renovations and repairs. These loans provide funds upfront for upgrades, allowing homeowners to finance improvements as part of their overall mortgage.

Renovation loans are usually structured in one of two ways:

FHA 203(k) Loan – This government-backed mortgage offers two options: Standard 203(k) loans and Limited 203(k)
Conventional Renovation Loan – Offered by private lenders, these loans allow you to take cash out to finance more extensive upgrades with fewer restrictions than FHA options. Loan amounts and renovation costs can be tailored to your unique project.

Benefits of Renovation Loans

Renovation loans provide many advantages for homebuyers looking to take on upgrade projects:

Finance improvements upfront – Funds for renovations become available once the loan closes, so you can start work immediately.
Consolidate costs – Renovation loan folds purchase price and upgrades into one mortgage with one monthly payment.
Increase home value – Smart renovations boost resale value, allowing you to get more out of your investment.
Customize your home – Make the property fit your lifestyle with renovations specific to your needs and tastes.
Live in an improved home sooner – Start enjoying upgrades immediately rather than saving up for future renovations.

How to Qualify for a Renovation Loan

To qualify for a renovation loan, you’ll need to meet specific mortgage requirements:

Credit – Lenders look for a minimum credit score of around 620. Better scores get you lower interest rates.
Income/Debt Ratios – Your total monthly debt payments, including the mortgage, should be at most 43% of gross monthly income.
Down Payment – Expect a down payment of around 3-5% for conventional loans and 3.5% for FHA 203(k) loans.
Property Requirements – The home must be at least a year old and zoned residential. Rental properties may not qualify.

Tips for Securing a Renovation Loan

Follow these tips to secure financing for your home remodel successfully:

Have a detailed contractor estimate to provide accurate renovation costs and paperwork.
Shop different lenders to compare loan products, rates, and terms.
Highlight ways upgrades will increase property value to help lender appraisal.
Get prequalified to show you can manage principal, interest, taxes, and insurance.
Highlight strong credit history and steady income.
Put down a larger down payment to get better loan terms.

Transform Your Home with a Renovation Loan

Financing upgrades with a renovation loan allows you to take your home from dated to dream without breaking the bank.

Do your homework to find the right lending option and get preapproved before house hunting. With the power of renovation loans, you can transform your home into everything you’ve always wanted.

If you’re looking to finance home renovations, contact the experts at Granite West Funding today at (559) 540-2275. Our team can help you find the perfect renovation loan to upgrade your home.

Transform your living space and increase your property value with a strategic renovation mortgage.

Krissi O

13:52 08 Jul 24

Granite West has been our "go to" on several occasions and never disappoint! Quick results and always professional! Highly recommend!!!

brittany gregory

00:01 16 Nov 23

Best first time home buying experience! Eric went above and beyond, and I couldn't be more grateful for him (and his team!).Highly recommend 💯

Tyler Bilby

21:51 12 Oct 23

Andrew Pence & Jackie Sollars are the best LO and Processor pair I have worked with to close Non-QM LoansSuper responsive, excellent communicators & problem solvers.Both of them work faster to get your loans closed than Jimmy johns making a sandwiches.If you're self employed looking for a bank statement loan or an investor looking to buy multiple properties utilizing DSCR loans, give Andrew and his team a call. He's knowledgeable and experienced in getting these done.Thank you for making loan transactions go so smoothly. Looking forward to funding many more loans for Andrew and Jackie here @ Oaktree Funding.

Blake Palmer

19:55 20 Aug 23

Eric was a great help!

Elissha Sarquis-Boutard

15:45 12 Aug 23

Andrew, Jackie and the rest of the team at Granite West Funding were so helpful in the process of purchasing our home. They always responded quickly whenever we had questions and worked hard to get us the best deal they could. Thanks!!

Matthew Slaughter

21:02 12 Jul 23

Andrew is very knowledgeable and extremely expedient in his operations. Granite mountain did more for my wife and I than we expected and went above and beyond.

Amy

18:05 20 May 23

What can I say? These guys are amazing! I worked very close with Eric & Jackie. I am sooo grateful for them and all their help. They both held my hand the entire time and walked with me through a difficult process. If it wasn’t for them I wouldn’t have my new home. Thank you GWF!!!! You guys are the BEST!!

Tammi Chumney

17:22 14 Feb 23

My husband and I just bought our first investment property and it is fabulous!!It was a very unique situation that demanded a lot of precise attention to details. Eric Wood was there every step of the way! Him and his team at Granite West funding are amazing professionals and very kind hearted people to work with. :) I just can’t say enough about our seamless experience with Eric Wood. Thank you to Jackie as well! We will be a regular clients for future investments and lending needs. Big thank you to you all from the Chumney’s!!

Sherry Andersen

01:02 10 Feb 23

We just finished a deal with Eric Wood and he was great to work with. He was extremely helpful and always responded quickly to our calls, texts or emails. I have worked with many people in the lending industry and can tell you that everyone at Granite West Funding is good at what they do. They had several options available for us and they handled our financing as if they were doing it for themselves or a loved one.Thank you Granite West Funding for making each of our transactions go quickly and smoothly!

David f

19:09 08 Feb 23

Hunter is the best! He walked us through the entire process and worked weekends and strange hours to make sure we closed in a timely manner.

Rusty Oetinger

14:35 07 Feb 23

Great service with outstanding people.

Mark Norman

13:44 01 Sep 22

Quality! sums up Andrew and his crew, if your looking for a loan and not a hassle, Granite West is your answer.

doug waller

20:04 02 Jun 22

Granite West Funding, LLC did a great job all the way through the funding process, I would recommend them.

Dylan Donkin

16:50 01 Jun 22

Fantastic team with speedy, friendly assistance whenever I needed it. I have zero complaints and would highly recommend them. Thanks again Granite West!

Christian Mueller

21:08 31 May 22

Thank you, Team Granite West! You have made the whole process, from applying for the mortgage to signing, very easy and worry-free.

Diane Hagood

20:12 31 May 22

Thank you Andrew and everyone at Granite West. You make the loan process work! You kept me informed each step along the way and congratulated me at the finish line. I appreciate everything.

Margot Brown

14:23 29 May 22

The Granite West Funding team worked at lightening speed to get our loan approval and funded. We couldn't be more please with their level of professionalism and service. We would highly recommend them to family and friends.

Carol Misener

18:58 27 May 22

Rajiv Sharma

20:08 25 May 22

True professionals, quick response and very transparent.

Buck Barton

17:18 23 May 22

Working with Andrew and his team was a great experience. He was always readily available to answer questions. Awesome job from all his staff

Rebecca Wishart

21:22 04 Apr 22

Eric Wood with Granite West is amazing! As a lender myself, I had the pleasure of working with him on a deal for a friend of his.Eric stayed in contact to help constantly & went above and beyond to be sure everything went well. He is knowledgeable and an all around nice good guy :-) Thanks for everything!!!

joshua shipp

13:27 25 Jan 22

They have always been a big help and able to answer all my questions. Very friendly and professional.

James Mierkey

18:46 24 Jan 22

Professional, knowledgable staff made a normally grueling experience of buying a house quick and easy.

Lyle Burlingame

06:06 08 Dec 21

The team at Granite West isn't joking when they say they put the "FUN" in Funding! Their fast action and personal white glove service has been a major contributing factor in my quickly closing on an amazing property well below market value in very competitive and stressful economic conditions to say the least. I'm very impressed by the entire team at GW and I'll be speaking with with again when it's time for my next purchase, HELOC or Re-fi. I owe them big time and I am so thankful for new home.You can trust your major purchase and investment funding to Eric, Andrew and the team at GW. I am so glad I did!

Cindy Kroon

22:30 26 Sep 21

I really enjoyed working with Andrew, Anne, Jackie, and Hunter. Everyone was friendly and easy to talk to. They were professional and yet not judgemental. I appreciate that and look forward to working with them again.

Kyle Chezum

23:45 21 Sep 21

By far the BEST mortgage / loan experience I've ever had. They're incredibly responsive and tech-friendly, so getting documents signed and collected was easy. Got an unbelievably good rate. I highly recommend Granite West Funding if you're looking for a home loan. Very smooth process with no issues.

Charles Ackerman

15:58 23 Jul 21

Thank you Andrew Pence and the entire team at Granite West Funding!Refinancing our house was fast and easy and any and all questions we had were answered quickly and clearly.We Highly recommend Granite West Funding, they are very friendly and very professional!

Rachel Church

16:23 12 Jul 21

A pleasure working with Andrew and his staff.

WashedOut 805

00:45 12 Jul 21

Sabrina Boos

20:01 07 Jul 21

Without this team my home buying experience would have been a nightmare. I worked with Hunter on a daily basis and he guided me through step by step. He was responsive and went far and beyond his duties. I also worked with Andrew and Lizette who were very professional and also very personal. I came to feel like this team was more of a family rather than just a business. Highly recommend them!

Linda Segraves

19:52 07 Jul 21

It was a pleasurable experience working with Andrew and his staff. Every question i had was answered immediately, professionally and fully. If i ever had the reason to buy another home/mortgage, i would definitly go with his group.

Kirk Flo

17:20 12 Jun 21

This the 2nd time working with Andrew. The first time was a refi. This time, Andrew was great at helping me see my dream of a 2nd home could be a reality. He was professional, informative and had great ideas.

Steve Ritchie

03:10 08 Jun 21

William Reitz

23:17 07 Jun 21

Andrew and the whole team were excellent. Highly recommend

Paul Feuerstein

22:53 25 May 21

Kara Lough

20:59 24 May 21

I love Granite West!! Everyone there is so friendly and professional, I just adore the staff. The process took me 9 months (because of the market in my area) and the whole team basically held my hand the entire way! They are extremely punctual and will communicate with you about every detail. I will always recommend them over and over again. Thank you Drew, Ann and everyone else there at Granite West!

brad Miller

21:23 14 May 21

The complicated process of mortgage financing, made easy and rapid with Granite West Funding. Would recommend to anyone.

Tyler Meadows

21:08 14 May 21

Andrew and his team were nothing but helpful and made my home buying process smooth as could be.

Jose Luna

16:53 18 Mar 21

MICK CAPPONI

20:11 17 Mar 21

We shopped several lending institutions and thought we had the best deal we could get until talking with Andrew at Granite West. We said, " Give it your best shot." He came back with a deal that blew everybody else out of the water. The process went smoothly and, in my opinion, quickly. I'm glad we contacted Andrew before committing to another lender. I would recommend Granite west to anybody.

Kima Knapp

21:12 15 Mar 21

We are grateful to this team for making the refinancing of our home easy, straightforward, and timely. Any time I had questions or concerns Eric and the team were available to talk on the phone! They always responded to my emails promptly. My husband and I highly recommend Granite West Funding!

Alison Ross

20:36 12 Mar 21

Andrew and Jesse Pence of Granite West Funding made the process of refinancing our home a pleasant and easy experience. Documents were always on time and their level of communication allowed us to know where we stood in the process and what was needed from us. As someone who is new with owning a home and refinancing, Jesse took the time to answer all questions. There was no hidden prices or later add ons. We knew each step of the way that Granite West Funding was looking out for our best interest. We highly recommend them.

Dan Johnson

02:23 11 Mar 21

Andrew and the team at Granite West Funding were phenomenal with our home loan! They were very precise and professional but also very friendly and welcoming. They were available to answer our questions and very knowledgeable. It was a pleasure working with them. I would highly recommend going with Granite West funding. If we ever re-fi or buy another house they will be the people I go with. Thank you guys for the great service it was much appreciated and we love our new home!

David Hall

13:50 08 Mar 21

ngunning1

16:03 05 Mar 21

Working with Granite West is always a pleasure. They are always quick to get back to you and answer all questions! Great experience! Thank you Granite West Funding!! :-)

Damon Terstegge

04:59 05 Mar 21

shayna chaney

02:43 05 Mar 21

Tara Anderson

02:39 05 Mar 21

Granite West Funding was amazing. They got me refinanced during my divorce within 30 days. Their staff even emailed me on weekends for information so that said to me that they were diligently working and they made me feel like I was special and let me assure you I am not. Eric and his team were super responsive through text and email. A+++

Diane Edwards

23:41 04 Mar 21

This is a very professional, detail oriented company. Everything went as smoothly as it possibly could

Peg

23:30 04 Mar 21

Have worked with Andrew and Jackie on several refis. Always competitive rates and smooth processing. Local business professionals.

F AT BOY ON A DIET

23:14 18 Jan 21

Andrew was prompt, professional, and courteous. He was patient and thorough answering all of my questions. He kept the ball rolling and the process was completed in the time frame promised. There were absolutely no surprises at settlement. We love our new home in Bass Lake Ca . An excellent job!"

Carly Russell

04:03 12 Jan 21

Granite West Funding is the BOMB! We went with them to purchase our house a few years ago and then again when rates dropped to Refi. I don't usually take the time to write a review but this company is not only the best at what they do but super cool to work with. They are straight shooters and I apprecite that they kept us informed every step of the way. They do not promise something they can't deliver. Okay already stop reading this review and call Granite West Funding!!!

Sarah Themins - Sanderson

01:16 12 Jan 21

The whole team was a pleasure to work with. They worked diligently, efficiently and close with me throughout the entire process. They were able to find a really good loan that fit my needs and with a great APR. I am now a very happy home owner and have them to thank for this. I highly recommend them. Thank you, Granite West!!!

Lily Collis

00:54 12 Jan 21

Jeffrey Barigian

20:13 04 Dec 20

This is our second loan with Mr. Pence and his team. The first was a very involved process regarding a new primary residence in expensive Santa Barbara. The local lenders were unable to secure financing for the purchase and with near perfect credit scores, and with 2 Doctors as purchasers. Enter Pence and team. Commitment to Excellence, Diligence, and Professionalism. Thinking out of the box. After securing financing, the local multimillion dollar home realtors were left scratching their heads and asking “Who is this guy?” Here’s the answer: A team of professional mortgage Brokers who will work tirelessly with you, NEVER give up, and make the whole process of producing a blizzard of documents, as easy as it can be. Buying and refinancing can be a daunting process. Let the “We will make it happen” Team at Granite be your first and only stop if you are looking for financing of the American Dream!Jeffrey J. Barigian, MDMichele C. Russell, PhD

Jackie L

00:07 17 Nov 20

THE ABSOLUTE best team out there!!!! I HIGHLY recommend Andrew at the Granite West Funding. Very responsive, very fast and very on top of EVERYTHING! I cannot emphasize enough how grateful and lucky we are to of have worked with Andrew! Thank you for all of your hard work and for helping us get the home of our dreams!

Juan G. Bautista

23:24 14 Nov 20

Frank Rodriguez

05:37 10 Nov 20

Our experience has been the most amazing experience. They were professional and committed when processing our loan request. Our representative keep us informed throughout the entire process. They will be our lender from now on.

Charity Bona

22:37 07 Nov 20

Eric and Jackie took such great care of us during our home buying process!! I would recommend them over and over again!

Carman Ruggeri

04:50 05 Nov 20

Answered every phone call. Did ask for a lot of info but in the end they did exactly what they said they would do. I would use them again.

Casey Knutson

15:31 21 Oct 20

Drew Pence at Granite West Funding was amazing to work with. As first time home buyers, we had a ton of questions and Drew was always there to answer them, no matter what time we called. What we liked about Drew the most was that he always gave us his honest opinion like a “real” person, not someone just trying to get our business. He really made us feel comfortable every step of the way. We would definitely recommend Drew for any of your needs and he will be the first person we call when we’re ready to re-fi or buy again.

MrChomps18 Vlogs

20:50 05 Oct 20

Alicia Hare

18:37 30 Sep 20

It was quick and easy they stayed on top of it so we were able to get funding needed immediatelyStaff was very friendly and helpful

John B

18:22 07 Sep 20

Andrew and the staff did a good job in getting the loan interest I wanted and in expediting the process with help all the way through the process. This is the second time I used them to purchase a home and I wouldn't hesitate to use them again.

Adam M

05:16 06 Sep 20

CHRISTINE SMITH

17:43 01 Sep 20

We had a great experience with Granite West Funding when we completed our home loan this month. They were fast, efficient and extremely professional, even closing a full week earlier than planned. We are very thankful that Andrew and his team worked to get us the best rate possible and we are very pleased with the result! We would highly recommend them to anyone interested in a new home loan or a refinance.

Micheal Despain

01:05 01 Sep 20

Andrew and his team were awesome. Our mortgage process was very unique and complex but Andrew and his team worked very hard to make everything work out to our benefit. I highly recommend them.

Frank Bigelow

18:07 19 Aug 20

Andrew and team were amazing! They are quick to respond and explain everything in a way that make sense. Give them a call before committing somewhere else.

Patricia Gonzalez

17:40 19 Aug 20

We had one of the most difficult loans you could possibly think of. Things were changing daily with covid and Andrew Pence and his team were there for us every step of the way and made it happen and now our family have seven owns our very first home!

roman zenz

23:33 17 Aug 20

Jackie, Jesse and Andrew at Granite West Funding helped us making the dream of buying a home come true. It was our first time buying and the team at Granite West Funding made everything really transparent and understandable. I highly recommend them!

Bonnie Olsten

18:00 10 Aug 20

They are the reason. I live in my new house. The best. They treat you like family. They have helped many clients and even my daughter. I would highly recommend them. Thanks Pence team!!

Rachel Olsten

18:02 06 Jul 20

They made the entire process smooth and easy! Very knowledgeable and helpful! You can trust they will make this the best home buying experience ever for you too!

Vic Zaura

15:40 16 Jun 20

We are extremely grateful to Andrew and his team for making the loan process the easiest loan experience we have ever had. With a special thanks to Jackie for her communication in keeping us informed every step along the way. We would not hesitate to refer clients to them or use them in the future.Thanks again for all your help.Andrew and his team are the best! After a recent purchase loan with Andrew we went back for a re-fi and Andrew and his his team again did and awesome job! Not only did they get me the lowest rate but closed it in 9 days! Could not be happier with Granite West Funding...Would recommend Andrew to anyone looking to purchase or re-fi.Thanks again for all your help.

Joyce Vind

17:55 09 Jun 20

I had a great experience with Granit West Funding. It is a welcoming office and each staff person was friendly, competent and helpful . They had my best interests in mind and were patient and informative when I had questions.

Jeffrey Jenkins

14:18 08 Jun 20

Andrew was such a help informing us throughout the process on our first house purchase!

David Helzer

18:23 07 Jun 20

We just completed our first home purchase with Granite West and it was a wonderful experience. They went above and beyond to take care of us. They were always available and answered all of our questions quickly. We highly recommend them, they will make it easy and they will make you happy! Thanks again Granite West!

ken sollars

06:04 03 Jun 20

you guys did a great job and we intend to recommend you when ever possible. the whole process was painless and quick. your loan processor was very knowledgeable and professional.

Jessica Upton

04:59 28 May 20

Our Lender Andrew was amazing and he without a doubt was the reason our escrow closed successfully. We originally had another lender and days before escrow was to close our loan fell through. You can imagine how scary that was. Thank goodness the sellers agent had Andrew as contact, he was able to come in days before our original escrow was to close and only add on an additional couple of weeks and make our loan happen. He was professional, friendly, extremely knowledgeable, and handled every timeline that had to be met with ease. We would recommend him without a doubt.

Jeremy Brownlow

16:57 25 May 20

I am a first time home owner thanks to Granite West, who made our family dream come true! A Plus Company!! Thank you Andrew and Team!!

Randy Runge

20:43 24 May 20

Ryun O'Reilly

07:34 24 May 20

My experience with Granite West Funding was amazing. They went above and beyond to make sure I got the best rate possible and make my refinance as easy as possible. The whole team is fantastic and I would recommend them to anyone looking for a home loan or refinance

Patty Block

22:23 23 May 20

Rebecca Ferris

21:07 18 May 20

Working with Andrew and the team at Granite West Funding has been an absolute breeze! My husband and I have used them many times and are always extremely happy! We can’t say enough good things about them and will always use them in the future!

Amanda Wells

20:31 18 May 20

Casey Hawkins

19:33 14 May 20

Margie Bennett

17:34 14 May 20

WE loved working with Andrew, not only did he help us with the purchase of our home up here he also did our refinance and both times were absolutely the easiest process I have ever been through. I would recommend Granite West Funding to anybody and everybody with no hesitation. They were professional, responsive and courteous.

Andrea Starkey

16:42 14 May 20

You can't imagine how terrifying it was to purchase a home at the start of a global pandemic, but somehow, Drew and his team managed to make us feel safe and secure. We are grateful for their responsiveness and professionalism!

Celia Allman

23:39 13 May 20

I had a very good experience with the group at Granite West. Andrew Pence went above and beyond to help us navigate some difficult hurdles on the road to refinance. We got a good deal at a great interest rate. Saving money already! and are able to do some much needed maintenance and upgrades. I am a happy camper. Thank you very much!!

Richard Rhodes

21:56 13 May 20

Andrew and the entire team at Granite West have been great. Even during the shut down Andrew kept me informed during the process of my refinance. He jumped on it right away and got me a percentage rate that has saved me several hundred dollars a month. I’m glad they are here in our small town!

Mary Pence

20:46 13 May 20

They made it so easy! And they saved me over $400 a month! Professional, responsive, and wonderful to work with.High recommend them.

Dan Merrill

20:28 13 May 20

Closed 1 week early!

LEPLEY TREE'S

02:58 30 Apr 20

They will make your dreams come true!

Cassandra Davis

21:38 27 Mar 20

Andrew and his team went above and beyond to help us with our loan for our new cabin purchase. We will definitely use them again!!!

Michael Farr

02:24 27 Mar 20

Granite West Funding made buying our first home a breeze! They answered any and all questions my wife or I had and we're very professional. Because of Andrew's passion and quick response, we were able to close in 30 days!! I highly recommend Granite West Funding.

Heather Buvalla

02:04 27 Mar 20

Richard White

01:18 27 Mar 20

They are great! Made the whole process as painless as possible.

Ralph Jeffery

21:25 26 Mar 20

Great and easy to work with I am self e,ployed so my loans are more difficult but granite did just fine.

Transforming Your Home: Understanding the Power of Renovation Loans

What Are Renovation Loans?

Benefits of Renovation Loans

How to Qualify for a Renovation Loan

Tips for Securing a Renovation Loan

Transform Your Home with a Renovation Loan

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