Renovation Lending for Real Estate Agents

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

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Why Renovate with Cardinal Financial?

  • Boost curb appeal when it’s time to sell
  • Only pay one set of closing costs
  • Customize a home instead of a new build – possibly for less
  • All within a mortgage financing instead of a credit card or other forms of unsecured debt

Our Renovation Process

Step 1: Renovation Qualification

Got docs?

First things first: Your clients need to submit documentation to qualify for renovation financing. This process is very similar to that of traditional financing.

Step 2: Contractor Selection

Build your team.

Next, your clients will shop for and select a home improvement professional to execute their renovations. Once the contractor is selected, your client will submit their contact info to Cardinal Financial.

Step 3: Contractor Validation

Our turn.

Once received, we’ll review and validate their chosen contractor’s qualifications. This includes checking their personal and business credit reports, building history, and previous project references. Renovation loans may also require a HUD consultant.

Step 4: Final Project Approval

Almost done.

Next, we’ll review all of the proposed home renovation details to make sure they meet our loan standards. This is also where we ensure your client has allocated enough funds in the proposed budget to complete the project and submit their final underwriting approval.

Step 5: Closing and LIP Account Setup

See you at closing.

Once your client’s renovation loan is approved, it’s time to set up a closing date with us and your client 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 your client and their contractor will draw funds from throughout the renovation. The monthly principal, interests, taxes, insurance, and association dues are always made right after closing.

Step 6: Draw Disbursements and Project Completion

Let’s wrap it up.

During construction, the chosen contractor or 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.

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Meet EasyPath Reno.

A faster path to fixer-upper financing.

If your client wants to skip the contractor, EasyPath Reno can help. This program is designed to be used when a home buyer chooses a big box store like The Home Depot, Lowe’s, or Menards to buy and install simple home improvement projects. It can also be combined with CHOICERenovation® and CHOICEReno® eXPress.

The EasyPath Reno Process

Step 1: Bid

Your client visits an eligible big box store and completes a bid.

Step 2: Review

Our Renovation Support Team reviews the bid and sets up the appraisal.

Step 3: Appraisal

The appraisal is completed based on the after-improved value.

The Perks of EasyPath

From saving time to saving money, there are a lot of potential benefits to taking the EasyPath.

Conveniently roll renovation costs into one mortgage with the potential for lower payments.

Save time by eliminating the contractor search and independent quoting process.

Execute the project without worry thanks to our standard workmanship warranty.

Rest easy knowing the project is being handled by trusted big-box retail brands with a customer focus.
Complete the form and one of our reno lending specialists will contact you.

Ready to help your clients finance their next home?

Get in touch today to explore all the ways renovation lending can make your client’s fixer-upper purchase easier.