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Colibri Home Loans

Finance the home and eligible improvements together

Renovation Loans

Renovation financing can combine an eligible purchase or refinance with improvement funds based on the completed property plan and value.

Understanding the option

A renovation loan underwrites the project as well as the borrower.

Renovation loans can help with a property that needs repairs, modernization, accessibility work, energy improvements, or other eligible upgrades. Depending on the program, funds may be held in a controlled account and released as documented work is completed.

The contractor, plans, bids, permits, contingency, inspections, draw schedule, project timeline, and as-completed appraisal can be as important as the borrower qualification. We help assemble the financing path before contractor and closing deadlines become compressed.

CombinesMortgage and eligible improvements
Value may useAs-completed appraisal
Project fundsControlled draws or escrow
Homeowners planning a renovation project
Renovation LoansCompare the complete picture before choosing the structure.

Qualification in context

Who it may fit—and what we review.

These are planning points, not universal approval rules. The selected program and complete borrower, property, and transaction determine eligibility.

01

This option may be useful for

  • Buyers considering an eligible property that needs repairs or updates
  • Owners refinancing while completing an approved improvement plan
  • Borrowers who can work with an eligible contractor and documented scope
  • Clients prepared for additional project review and a longer planning timeline
02

What the loan review may include

  • Program fit, borrower qualification, occupancy, and property eligibility
  • Detailed scope, contractor bid, credentials, permits, and timeline
  • As-is and as-completed value, contingency, inspections, and draw process
  • Temporary housing, payment reserves, cost overruns, and changes to the plan

A practical process

From first conversation to a lender-ready plan.

  1. 01

    Define the property and scope

    Identify needed improvements, likely contractors, timing, occupancy, budget, and whether the project fits renovation rather than construction financing.

  2. 02

    Build the documented plan

    Collect detailed bids, plans, contractor credentials, permits, contingency, and any program-required consultant information.

  3. 03

    Underwrite future value and financing

    The borrower, property, title, insurance, project, and as-completed appraisal are reviewed before closing.

  4. 04

    Complete work through draws

    After closing, eligible funds are released under the program’s inspection and draw process until documented completion.

Renovation Loans FAQs

Answers to the questions clients ask first.

Program details vary. These answers provide a starting point for a scenario-specific conversation.

Ask Us a Question
Can I do the renovation work myself?

Many programs require an eligible third-party contractor and restrict self-help work. Confirm the rule before choosing contractors or assuming labor can be contributed.

How is the property appraised?

The appraisal may consider the current condition and the expected value after completion using the approved plans, specifications, and bids. The program determines the value used for underwriting.

What happens if the project costs more?

Programs commonly require a contingency reserve, but change orders and overruns still need approval and may require additional borrower funds. A detailed scope reduces avoidable surprises.

Compare the alternatives

Homebuyers exploring an FHA home loan Loan option

FHA Home Loans

Accessible down payment and qualification options for eligible buyers.

Explore option → Couple moving into a new home Loan option

Conventional Home Loans

Flexible purchase and refinance financing for qualified borrowers.

Explore option → Homeowners planning how to use their home equity Loan option

Cash-Out Refinance

Replace an existing mortgage while accessing available home equity.

Explore option →

Important: This page is for general education and is not a commitment to lend, approval, rate quote, or legal or tax advice. Programs, rates, pricing, terms, and guidelines may change. All loans are subject to application, documentation, credit, underwriting, acceptable property review, and applicable law.