Renovation Lending for Contractors

Fixer-uppers are more popular than ever. And thanks to Cardinal Financial’s renovation loan products, financing the work you put into them is more convenient than ever. Based on the after-improved value of the home, renovation loans give your customers the ability to finance their mortgage and renovation costs in one convenient loan.

The Cardinal Difference

From major structural updates to minor repairs, we’re here to help get your projects financed with minimal hassle.

You’ll be supported by our in-house Home Renovation Team, who’s been trained to assist your customers during each stage of the renovation project.

We offer rehab loans from the FHA and Fannie Mae, each with built-in renovation funding. These loans allow your customers to use the after-improved value of the home to expand the amount of funds available to finance your work.

Your payments are approved and the funds are held in escrow by our Home Renovation Team. They’ll issue payments in a series of draws as work is completed.

Our Renovation Process

Step 1: Qualification

Got docs?

Your customers will submit documentation to see if they qualify for renovation financing.

Step 2: Validation

Our turn.

We’ll review and validate your licensing history and insurance credentials.

Step 3: Project Approval

Almost done.

Next, we’ll review your project details to make sure they meet our loan standards.

Step 4: Closing and LIP Account Setup

Get funded.

Once your customer’s renovation loan is approved, it’s time to set up a closing date with us and your customer to sign the final documents and pay any closing costs due. The renovation funds will be held in a Loan in Process (LIP) account. This is the account you and your customer will draw funds from throughout the renovation.

Step 5: Draw Disbursements and Project Completion

Let’s wrap it up.

During construction, you or the HUD consultant will request to draw funds from the loan as needed for materials, labor, and other related costs. Renovations must be completed within 6-12 months of the closing date.

Renovation | Contractor

Project Types

  • Replacement of electrical, HVAC, and plumbing systems
  • Adding or expanding bedrooms and bathrooms
  • Functional improvements such as remodeling a kitchen or bathroom
  • Increasing home energy efficiency
  • Improving accessibility
  • Luxury projects and additions, such as a swimming pool
  • Renovating a second home or investment property

Products with Purpose

Loan parameters can change – for the most accurate details of all loan products, please speak with your Cardinal Financial loan originator for details.

Creating a Bid

When it comes to renovation, details matter. That’s why we made it easy to place a detailed bid with our free templates.


You asked, we answered.

What if our customers want extra work done?

The approved renovation escrow account is based on the original bid. For additional work, you’d need to submit a change order for non-listed materials or labor. If this change order is not approved by Cardinal, it would be your customer’s responsibility to fund the additional work.

Can I get money before the work starts?

Cardinal does allow funds to be released upfront for material costs on all products with customer permission. In most cases, the remaining funds will be released after work items are complete and inspected.

What’s a holdback?

As each draw is released, 10% of the funds requested are held back until all the renovations are complete and a final inspection is done. Once all parties agree on satisfactory work and no liens have been filed against the property, all holdbacks are released.

How does the contingency reserve work?

A contingency reserve is either collected or financed to pay for unforeseen repairs. If none occur, the reserve funds can either be used to execute additional repairs (if approved by our draw disbursement team) or applied to the principal balance of the loan. If your customer puts up the contingency in cash, it can be directly refunded.
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Ready to Renovate?

Get in touch today to explore all the ways we can help streamline your next project.