Renovation Loans

Home Renovation Loans in Cadiz KY

Found the perfect location but the house needs work? Or want to buy a fixer-upper and customize it your way? With a home renovation loan from Quality Home Mortgage, you can finance both the purchase of a home and the cost of repairs — all in one convenient loan.



Based in Cadiz, KY, we help buyers throughout Western Kentucky turn outdated or damaged homes into dream homes with smart, affordable renovation financing.

What Is a Renovation Loan?

A renovation loan (sometimes called a rehab loan or renovation mortgage) allows you to borrow the full cost of a home plus the cost of renovations. These loans are ideal if the home you're buying needs anything from minor cosmetic updates to major structural work.



Unlike traditional mortgages, renovation loans base your loan amount on the projected value of the home after improvements — giving you access to more funding upfront.

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Purchase + Repair in One Step

Who Should Consider a Renovation Loan?

These loans are ideal for:

  • Buyers purchasing fixer-uppers or foreclosures
  • Homeowners who want to refinance and remodel at the same time
  • First-time buyers who want a starter home they can upgrade
  • Homeowners improving property value before resale

What Can You Use a Renovation Loan For?

Renovation loans can be used for nearly any improvement that adds value or livability to the home, including:

  • Kitchen and bathroom remodeling
  • Roof or HVAC replacement
  • Flooring upgrades
  • Room additions or layout changes
  • Structural repairs (foundation, electrical, plumbing)
  • Accessibility upgrades
  • Energy efficiency improvements

Types of Renovation Loans We Offer

A government-backed loan that allows you to purchase or refinance a home and fund repairs or upgrades — with just 3.5% down (for qualifying credit scores).

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FHA 203(k) Loan

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Conventional Renovation Loans

Backed by Fannie Mae’s HomeStyle® Renovation Loan, these offer flexibility and higher borrowing limits for well-qualified buyers.



We’ll help you decide which renovation loan fits your project, budget, and timeline best.

Renovation Loan Process

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Step 1: Pre-Approval

We assess your finances and discuss your renovation goals to determine what you qualify for.

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Step 2: Property Search & Contractor Estimates

Once you find a property, you'll get bids from licensed contractors for the intended improvements. These are submitted with your loan application.

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Step 3: Appraisal Based on Future Value

An appraiser evaluates the home’s after-renovation value, which helps determine your total loan amount.

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Step 4: Close & Renovate

The loan funds are released after closing — some to the seller, the rest held in escrow and paid to contractors as work is completed.

FAQs About Renovation Loans

  • Can I use a renovation loan if I already own my home?

    Yes — we offer renovation refinance options if you want to remodel your current home.

  • Do I need a licensed contractor?

    Yes. Most renovation loan programs require that work be done by a licensed, insured contractor. DIY projects typically aren't eligible.

  • How long does the process take?

    Plan for 45–60 days, depending on the scope of renovations. We’ll help move things along quickly and keep you informed.

  • What’s the minimum credit score?

    For FHA 203(k), the minimum is typically 580–620. For conventional renovation loans, a score of 620–640+ is preferred.

Ready to Finance Your Fixer-Upper?

Don’t let a little wear and tear stop you from buying the right home. With a renovation loan from Quality Home Mortgage, you can invest in a property’s potential and make it your own — all with one smart mortgage.