Renovation Loans

4 Replies


My name is Jeff and I live in Bedford, Indiana. I am currently a public school teacher. My wife and I have been acquiring rental properties for the last year and a half. We have 6 rental properties fully rented. Since we are fairly new in the rental business, we owe quite a bit on our properties. We are currently living in a home we purchased to be a rental property but have decided to flip it instead. We currently have a construction loan out on our home however since we want to do more to it to flip it we need a renovation loan for our home. We have all our properties financed through a local bank but we have pretty much maxed out what they want to loan to us at this stage. Because of the debt we have incurred, we have a high debt to income ration, around 48% right now. We tried one company that strung us along for several months before they informed us they could not loan us the renovation money. I am retired national guard so I would qualify for a VA loan, didn't know if that was a good option or not. Can anyone recommend a company or route we should go to secure a renovation loan. We don't mind paying a higher interest rate since it will only be short term, we just need to secure the loan to do the renovations and get this place sold so we can pay down debt and move on to the next property.

Thank you for any assistance!


How much are you going thinking of needing for the reno loan? It might be worthwhile to consider other options besides a reno loan from a bank since there are some hurdles with reno loans that I found to be a pain. Also have you considered selling the property as is?

Hi Dante,

Thank you for responding.  We are trying to borrow $25,000 to renovate the kitchen and a couple bathrooms as well as some plumbing and drywall work and a new HVAC system.  It is an older home built in 1900 with A lot of potential to be a beautiful home and sell at a really good price. we got it pretty cheap but we have put some money into it already.  if we were to sell it as is now we wouldn't make any money.  Do you know of other options besides a Reno loan from the bank?