Smart Renovation Starts Here
Turn a tired property into a wealth-building asset—with a plan that protects your cash, timeline, and sanity.Be Ready Before You Fall in Love With the Home
Beyond the Loan
At Stairway Mortgage, we don’t just fund renovations—we help you design a renovation strategy that actually pays off. From as-completed value (ARV) to draw schedules, we build a step-by-step plan so you don’t run out of cash, time, or patience mid-project.
The real question isn’t “Can I finance the renovation?” — it’s “How do I renovate wisely?”
Every property is different. Every scope is unique. We help you choose the right structure for today—and for your exit plan.
Key Questions Most People Overlook
- What’s the realistic ARV—and how does it cap your max purchase price?
- How will draws, inspections, and interest-only periods impact cash flow?
- Do your upgrades actually appraise? (Not all improvements add value equally.)
- What’s your Plan B? (Rent? Sell? Refi? Hold?)
- Are you budgeting contingency, carry costs, permits, and temp housing?
Understand the Total Project Cost (Not Just the Mortgage)
- Scope of Work + Bids (labor, materials, subs)
- Contingency (10–20% recommended)
- Soft Costs (permits, plans, consultant fees, inspections)
- Carry Costs (utilities, taxes, insurance during renovation)
- Housing Plan (if the home isn’t livable mid-project)
Renovation Loan Options—At a Glance
Choose the structure that fits your timeline, credit profile, and exit:
- FHA 203(k) Limited & Standard – Great for owner-occupants; HUD consultant on Standard.
- Conventional HomeStyle® / CHOICERenovation® – Flexible for primary, second home, and (in many cases) investment.
- VA Renovation – For eligible veterans; pair improvements with zero-down benefits.
- Jumbo Renovation – Higher price points with renovation budgets.
Construction-to-Perm (Light Reno/New Build) – When scope approaches new construction.
Run the Numbers Before You Swing a Hammer
Not sure which path pencils? Use these tools:
- 203(k) Renovation Calculator
- HomeStyle / Conventional Renovation Calculator
- ARV & Max Offer Calculator (offer price from ARV, repair, and margin)
- Draw Schedule & Cash-Flow Planner
- Carry Cost Calculator
- DIY vs. General Contractor Break-Even
Investor Angle: Flip or BRRRR?
Renovating as an investor or house-hacker? Measure the upside clearly:
- Fix & Flip Profit Calculator
- BRRRR Method Calculator (Buy–Renovate–Rent–Refi–Repeat)
- Buy & Hold Cashflow Calculator
- Investment Growth & Equity Build Calculator
Smart Renovation Strategies—Beyond the Makeover
- Target high-ROI upgrades (kitchens, baths, systems, curb appeal).
- Design with future appraisal and rental value in mind—not just aesthetics.
- Consider an ADU/garage conversion for extra income.
- Plan your refi/exit before you start; know seasoning and LTV targets.
- Use an inspection & change-order protocol to avoid budget creep.
From Offer to Final Draw: 8 Key Steps
- Get Preapproved and confirm program fit & budget.
- Inspection & Scope: walkthrough + contractor bids (we can intro vetted pros).
- Appraisal (As-Completed Value) from your plans, specs, and comps.
- Underwriting: approve income, assets, contractor, and scope of work.
- Close the Loan: funds held in an escrowed renovation account.
- Work Begins: construction proceeds in phases.
- Draws Released after inspections; interest accrues only on disbursed funds.
- Project Close-Out: final inspection, turn-key—and plan your next move (refi, rent, or sell).
Top 7 Renovation Mistakes to Avoid
- Shopping only by rate—ignoring draw terms and timelines.
- No contingency for surprises behind the walls.
- Over-improving for the neighborhood—appraisal won’t support it.
- Relying on one bid (get 2–3 with identical scopes).
- DIY labor assumptions that programs won’t allow.
- Skipping permits—draws stall and values suffer.
- Shopping only by rate—ignoring draw terms and timelines.
Before You Invest, Ask Yourself:
Do I need a HUD consultant?
For FHA 203(k) Standard, yes—scope, inspections, and draws are coordinated.
Can my own labor count?
Most programs don’t credit sweat equity—assume licensed labor.
How is value determined?
Appraisal uses as-completed value from your plans/specs and comps.
What’s typical contingency?
10–20% depending on property age/scope.
How are draws paid?
After phase completion and inspection; interest only on funds disbursed.
Can I live in the home during renovation?
Depends on scope and safety—plan housing early.
Need Pros? We’ll Connect You.
We can introduce HUD consultants, GCs, architects, inspectors, and appraisers who understand renovation financing and move at the speed of your draw schedule.
Download our free First Time Investor Guide
Everything you need to budget, bid, and close with confidence.
New brand. Same trusted leadership.
What Clients Say About Working with Jim & Team
Built on Trust. Backed by Experience.
Abhii Sundaram - via Google
I recently bought a house in Torrance, CA and Jim was my lender. He was absolutely exceptional as a lender. Most lenders DO NOT take the time to sit down with you and chat over the phone for many hours like Jim does. After I applied for my pre-qualification letter, he called and discussed the entire housing process and what to expect next in terms of paperwork and process. This is essential for first-time home buyers and even seasoned buyers. You get confidence and a sense of security when you know your lender is always accessible and is willing to chat on the phone with you to help sort out paperwork and issues at every step of the way.
Francesca Mustacchia - via Angi
HANDS DOWN – EXCEPTIONAL. Honest, extremely knowledgeable, got back to me right away. What more could you ask for? He and his team turned the whole process into a positive experience that was STRESS-FREE, not a small feat considering that I was combining two co-op apartments in New York and refinancing my existing co-op into the new purchase. This team is on the case! The best mortgage experience by far. Will be a repeat customer!
David Macaulay - via Google
The bottom line is a loan is a loan. Provided the interest rate is the same, it is true that it really doesn't make much of a difference who the mortgage company is – from a customer's perspective anyway. But the distinction is in the details. You don't just want a lender; you want someone with great experience, expert understanding of the mortgage laws, and most importantly, someone that has your interest at heart and not just after your business.
Discover the Goals That Drive Your Financial Journey
You’ve built the equity — now it’s time to make it work for you and your peace of mind.
Take the Discovery Quiz to clarify your goals and explore how your home can support your next chapter with dignity and purpose.