Loan Program
Fast, flexible hard money financing for rehab and renovation loan opportunities. We structure terms for speed, clarity, and execution.
Rehab and renovation loans provide specialized financing for improving existing properties, enabling owners and investors to fund repairs, upgrades, and value-add improvements that enhance property functionality, aesthetics, and market value. These loan products address the unique characteristics of renovation projects, where construction costs must be integrated with existing property financing and improvement timelines affect property occupancy and income generation. In Miami's diverse housing stock, renovation financing supports property preservation and neighborhood improvement.
The rehabilitation lending market serves diverse borrower needs and project types. Homeowners utilize renovation loans to modernize aging properties, repair deferred maintenance, or adapt homes to changing family needs. Investors employ renovation financing for value-add strategies that increase rental income and property values. Each application requires tailored loan structures matching project scopes, timelines, and funding requirements.
Miami's housing stock includes significant vintage inventory requiring ongoing maintenance and modernization. From historic homes in Coral Gables and Miami Springs to mid-century properties throughout the county, existing housing represents substantial renovation opportunities. Renovation financing enables property owners to improve housing quality while building equity through strategic improvements.
The economics of renovation projects differ fundamentally from new construction. Working within existing structures presents unexpected conditions, code compliance challenges, and design constraints that affect costs and timelines. Renovation lenders must understand these complexities and structure loans accommodating the uncertainty inherent in improvement projects while providing appropriate funding controls.
Rehab and renovation loans support diverse property improvement scenarios across residential and commercial applications. Home improvement financing enables homeowners to fund kitchen and bath remodels, room additions, system upgrades, and cosmetic improvements that enhance living quality and property values. These loans accommodate projects ranging from minor updates to major renovations requiring structural modifications.
Investment property rehabilitation supports value-add strategies for rental properties and fix-and-flip projects. Investors acquire properties requiring renovation, then use rehab financing to fund improvements that increase rents and values. Unit-by-unit renovation approaches minimize vacancy impacts while gradually upgrading property quality and income generation.
Commercial property renovation financing supports improvements to office buildings, retail centers, and industrial properties. Tenant improvement allowances, building system upgrades, facade improvements, and common area renovations enhance property competitiveness and rental rates. These commercial renovations often coincide with lease renewals or new tenant acquisitions.
Historic property restoration requires specialized renovation financing accommodating preservation requirements, specialized contractor expertise, and extended timelines. Miami's historic districts contain significant properties requiring sensitive renovation approaches that maintain architectural integrity while modernizing systems and functionality. Historic tax credits and preservation incentives may integrate with renovation financing structures.
Renovation financing presents distinct challenges reflecting the uncertainty and complexity of improvement projects. Hidden condition discovery represents a primary risk, as demolition and investigation often reveal issues not apparent during initial assessments. Structural deficiencies, electrical code violations, plumbing problems, and hazardous materials can dramatically increase project costs and extend timelines.
Contractor qualification and management affects renovation success significantly. Quality renovation work requires skilled tradespeople familiar with existing building systems and proper integration of new work. Contractor selection, supervision, and payment management create challenges for property owners, particularly those without construction experience.
Project scope management proves difficult when owners encounter opportunities for additional improvements during renovation. Budget discipline and clear project definition help prevent scope creep that extends timelines and increases costs. Renovation lenders must evaluate project plans thoroughly and monitor progress to ensure loan proceeds fund approved improvements.
Our rehab and renovation loan program provides flexible financing structures accommodating diverse improvement projects while maintaining appropriate construction management controls. We evaluate projects based on detailed scope definitions, contractor qualifications, cost estimates, and value impact assessments. This thorough review ensures loan proceeds fund feasible improvements that enhance property values appropriately.
We offer both acquisition-rehab combination loans and stand-alone renovation financing for existing property owners. Combination loans streamline financing for investors purchasing properties requiring immediate improvement. Stand-alone renovation loans enable owners to improve properties already owned, accessing equity or qualifying based on post-renovation values.
Our construction management approach includes draw inspection processes verifying work completion before fund releases. Experienced inspectors evaluate renovation quality and completion percentages, ensuring loan proceeds pay for completed work meeting acceptable standards. This system protects both lender and borrower interests while providing contractors appropriate cash flow for project progress.
Miami's renovation market reflects the region's architectural diversity and housing age distribution. From Art Deco renovations in Miami Beach to Mediterranean Revival updates in Coral Gables, each architectural style presents distinct renovation considerations. Our lending incorporates understanding of Miami's building stock characteristics, code requirements, and renovation market dynamics that affect project feasibility and value impacts.
We finance virtually all types of property improvements including kitchen and bath remodels, room additions, system upgrades (HVAC, electrical, plumbing), roofing, flooring, exterior improvements, and structural repairs. Both cosmetic updates and major renovations qualify. Prohibited uses typically include luxury items with minimal value impact such as swimming pools or extensive landscaping, though these may be included in larger renovation scopes.
Renovation loan amounts are based on the lesser of project cost or post-renovation value. We require detailed contractor bids and may obtain "as-improved" appraisals estimating value after completion. Loan-to-value ratios typically range from 75-85% of post-renovation value for owner-occupied properties, with lower ratios for investment properties. This value-based approach enables borrowers to access equity created through improvements.
Licensed contractors are typically required for renovation financing, particularly for structural, electrical, and plumbing work. DIY renovations may be permitted for cosmetic improvements by owner-occupants with demonstrated capabilities. Contractor requirements protect both borrower and lender by ensuring work quality and completion. We verify contractor licenses, insurance, and references before approving renovation loans.
Renovation timelines are established based on project scope, typically ranging from 3 months for minor updates to 12 months for major renovations. Loans include specific completion deadlines with extension provisions available for unforeseen delays. Interest reserves are calculated based on expected timelines. Delays extending beyond reserved interest periods become borrower responsibility, encouraging timely completion.
Yes, renovation loans are specifically designed for properties not qualifying for traditional financing due to condition issues. Properties lacking functional kitchens, bathrooms, or HVAC systems, common barriers to conventional loans, can be acquired and improved using renovation financing. After completion, properties typically qualify for traditional refinancing at improved rates and terms.