Renovation & Rehab Loans
Finance your value-add projects with high-leverage renovation loans. Up to 90% of purchase price and 100% of rehab costs covered.
Renovation financing lets you acquire and improve properties in a single loan. Whether you're renovating a single-family house, updating a 2-4 unit building or repositioning a small multifamily of up to 9 units, the loan covers both the purchase and the work, drawn as the work is completed.
Our lender network specializes in value-add strategies. They understand construction budgets, scope of work documentation, and the difference between cosmetic and structural renovation.
Most renovation loans are structured as short-term, interest-only facilities with draws against the rehab budget. Once the renovation is complete and the property is stabilized, we help you refinance into permanent financing.
$1M – $5M
Renovation & Rehab Loans: terms at a glance
Updated · David Hodara, Founder
| Loan size | $1M to $5M |
|---|---|
| Leverage | Up to 90% LTC |
| Term | 12-18 months, interest-only |
| Rate | Typically 8-12%, interest-only |
| Fee | 1-2% of the loan, paid at closing. No upfront fees |
| Term sheet | 24-48 hours |
| Closing | About two weeks on a clean file |
| Property | Single-family, 2-4 units, condo, townhome, small multifamily up to 9 units, held for investment |
| Borrowers | US investors and foreign nationals on the same terms, through an LLC. No US credit history required for non-US investors |
| Purpose | Business-purpose only, non-owner-occupied |
Value-add on 1-4 unit residential, rehab drawn in arrears against completed work.
Key Features
High Leverage
Up to 90% of purchase price and 100% of rehab costs. Minimize your equity requirement.
Interest-Only
Pay interest only during the renovation period. Payments based on drawn balance.
Rehab Draws
Funds released as work is completed. Inspections verify progress before each draw.
All Scope Levels
From cosmetic updates to full gut renovations. Light, medium, and heavy rehab programs.
Fast Approval
Experienced renovators can close in 2-3 weeks with a clear scope of work.
Refinance Path
We plan your exit to permanent financing before the rehab even starts.
Ideal For
Multifamily value-add (unit upgrades, amenity additions)
Commercial property repositioning
Adaptive reuse and conversion projects
Fix and hold strategies
Properties with significant deferred maintenance
Investors buying below market value and adding value through renovation
Renovation & Rehab Loans in active state markets
Market-specific dynamics affect how renovation & rehab loans get structured and priced. Browse the state × asset class pages for local context, top metros, and FAQs.
FL · Single Family & 1-4 Unit
Florida Single Family & 1-4 Unit →
FL · Fix and Flip
Florida Fix and Flip →
FL · Small Multifamily (5-9 Units)
Florida Small Multifamily (5-9 Units) →
FL · SFR Portfolio
Florida SFR Portfolio →
TX · Single Family & 1-4 Unit
Texas Single Family & 1-4 Unit →
TX · Small Multifamily (5-9 Units)
Texas Small Multifamily (5-9 Units) →
CA · Single Family & 1-4 Unit
California Single Family & 1-4 Unit →
CA · Small Multifamily (5-9 Units)
California Small Multifamily (5-9 Units) →
NY · Small Multifamily (5-9 Units)
New York Small Multifamily (5-9 Units) →
AZ · Single Family & 1-4 Unit
Arizona Single Family & 1-4 Unit →
GA · Single Family & 1-4 Unit
Georgia Single Family & 1-4 Unit →
TN · Single Family & 1-4 Unit
Tennessee Single Family & 1-4 Unit →
NC · Single Family & 1-4 Unit
North Carolina Single Family & 1-4 Unit →
Plan your renovation & rehab loans
Frequently Asked Questions
Is a renovation loan a business-purpose mortgage to an LLC?
Yes. It is a business-purpose mortgage to your LLC on a non-owner-occupied investment property, covering the purchase and the works, with the rehab drawn against completed work. It is not a consumer mortgage, and it is not available for renovating a property you or your family live in.
What is the difference between a renovation loan and a construction loan?
Renovation loans finance improvements to an existing structure, cosmetic updates, unit renovations, mechanical upgrades, or even gut rehabs. Construction loans finance ground-up building or projects where the existing structure is demolished. The key difference is that renovation loans typically have shorter timelines (6-18 months vs. 12-24 months), faster closings, and are underwritten based on both as-is and after-repair value.
How much of the renovation cost will a lender cover?
Most renovation lenders finance up to 100% of rehab costs and up to 90% of the purchase price. Total loan amount is also capped at 70-75% of the after-repair value (ARV). For example, on a $2M purchase with $500K in rehab and a $3.5M ARV, a lender might finance $1.8M of purchase (90%) and the full $500K rehab, for a total loan of $2.3M (65.7% of ARV).
Do I need a detailed scope of work to get a renovation loan?
Yes. Lenders require a detailed scope of work (SOW) that lists every renovation item, associated costs, and a realistic timeline. The SOW is used to set the draw schedule and the after-repair value appraisal. A contractor's bid or estimate is typically required. We can help you structure your SOW to meet lender requirements.
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Submit a DealDisclosure: Passy Capital LLC, a Florida limited liability company (registered at 7901 4th St N, Ste 300, St. Petersburg, FL 33702), is a commercial real estate financing brokerage, not a direct lender. All loans are placed through third-party lenders and are subject to lender approval, underwriting, credit, property, and other criteria. Rates, terms, and conditions vary by lender, borrower profile, and deal specifics. Information presented does not constitute a commitment to lend. Loans are for business purposes only and made to limited liability companies or other entity borrowers; they are not offered to consumers and are not for personal, family, or household use. Programs are available in select states; licensing requirements vary by jurisdiction.