by suprememarketing | Aug 13, 2026 | Renovation
Sometimes the home that checks every box on your list also needs a new roof, an updated kitchen, or a bathroom that hasn’t been touched since the 90s. That combination scares a lot of buyers off, either because they assume they can’t afford the repairs or because they don’t realize there may be a mortgage option designed for this type of situation.
A renovation loan allows eligible borrowers to finance the purchase price of a home and eligible renovation costs with a single mortgage. Instead of buying a home and then separately taking out a personal loan, tapping savings, or maxing out a credit card to cover repairs, the renovation costs get rolled into your monthly payment from day one.
How a Renovation Loan Works
The process starts like a typical purchase, but with one extra step. Once you’re under contract, you’ll get a scope and cost estimate for the renovations you want to make. That estimate may be incorporated into your loan amount, subject to program guidelines and approved renovation costs.
Depending on the loan program, renovation financing may also be available for eligible refinance transactions. If you already own your home and want to fund a remodel, refinancing with a renovation loan may be an option.
Who Should Consider a Renovation Loan?
This option tends to make the most sense in a few common situations:
- You found a home in the right neighborhood, school district, or price range, but it needs cosmetic or structural work before it’s truly livable.
- You’re comparing a fixer-upper against a move-in-ready home that’s priced higher and want to see if the renovation route actually saves money.
- You already own your home and want to fund a remodel without a separate loan.
- Depending on the loan program, you’re purchasing an eligible investment property that needs improvements before it’s ready for occupancy or rental.
Available features vary by loan program. Depending on the product, renovation financing may be available for primary residences, second homes, or eligible investment properties. Eligible renovation projects and credit requirements also vary by program.
What to know before you start
A few things are worth understanding going in:
- Eligibility varies by loan program and property type.
- Eligible renovation projects may include kitchens, bathrooms, roofs, patios, pools, and other improvements, depending on the loan program.
- Purchase and refinance options may be available, depending on the renovation loan selected.
- Credit requirements vary by loan program and borrower qualifications.
Is a Renovation Loan right for you?
If you’ve found a home that’s close to right but not quite there, or you’re sitting in a home that needs some love, a renovation loan may help make your homebuying or renovation goals more achievable. Reach out to one of our loan officers to review your financing options and determine whether a renovation loan may be a good fit for your goals.
Disclaimers
Supreme Lending is a registered mortgage lender. This information is provided for educational purposes only and should not be construed as financial, legal, or tax advice. All loans are subject to credit and property approval. Conditions and restrictions may apply. Supreme Lending NMLS #2129. Equal Housing Lender.
by suprememarketing | Jan 21, 2026 | VA
Military veterans and active-duty service members have dedicated their lives to serving our country, and Supreme Lending couldn’t be more grateful for their service. When it comes to homeownership, there’s no one more deserving than those who risk their lives to protect our freedom and safety. Supreme Lending is proud to offer the VA loan program. Backed by the U.S. Department of Veterans Affairs (VA), VA loans are designed to give eligible borrowers valuable home financing benefits, including no down payment requirement.
In this article, we’ll explore VA loans, eligibility, and, more specifically, the VA loan funding fee and how it works.
What Is A VA Loan?
A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs. VA financing helps miliary veterans, active-duty service members, and certain members of the National Guard and Reserves become homebuyers. These loans offer several advantages, such as:
- No Down Payment Requirement. One of the biggest benefits of VA loans is that they allow you to purchase a home without a down payment. This makes homeownership for eligible military families more accessible with less upfront costs.
- Competitive Rates. VA loans often come with lower rates compared to Conventional loans, which may save money in interest over the life of the loan.
- No Private Mortgage Insurance. Unlike many Conventional loans that require Private Mortgage Insurance (PMI) when you put less than 20% down, VA loans don’t require this added cost.
- Repeat Buyers. Another unique benefit of VA financing is that it is not only for first-time homebuyers. Repeat buyers are accepted and second homes may be eligible under certain circumstances.
- Low VA Loan Funding Fee. The one-time VA loan funding fee is greatly lower than the typical down payment requirements. Below, we will outline the various funding fee percentages depending on the situation.
- Exemptions for Eligible Borrowers Available. There is an option to be exempt from paying the funding fee for qualified borrowers. For example, veterans who receive compensation for a disability related to their miliary service or active-duty members who received the Purple Heart.
Who Is Eligible for a VA Loan?
To qualify for a VA loan, you must meet specific eligibility guidelines. Generally, you must be a veteran, active-duty service member, or a member of the National Guard or Reserves. When applying for a VA loan, you must have a valid Certificate of Eligibility (COE). This demonstrates your service record and entitlement to VA loan benefits. Some surviving spouses of veterans may also qualify under certain circumstances.
What Is a VA Loan Funding Fee?
While VA loans offer incredible benefits, there is an important cost borrowers need to keep in mind: the VA loan funding fee. The fee helps to lower the cost of the loan for U.S. taxpayers since the VA home loan program doesn’t require down payments or monthly mortgage insurance.
Funding Fee Amounts
The amount of the funding fee varies based on the borrower, type of VA loan they’re getting, and how much down payment is being paid. First-time borrowers typically pay a lower funding fee compared to those who have previously used a VA loan
Click here for a breakdown of funding fees based on loan type.
Paying the Funding Fee
The VA funding fee is paid at closing. There are a few ways you may choose to pay the fee:
- Upfront Payment. Borrowers may pay the fee at closing, in full, which can be included as a closing cost.
- Finance Fee. Borrowers may also choose to roll the funding fee into their loan amount, allowing them to pay it over the life of the mortgage instead of upfront.
- Seller Concessions. In some cases, the seller may agree to cover the funding fee as part of the purchase agreement, providing additional assistance to the buyer.
by suprememarketing | Jan 5, 2026 | Uncategorized
Whether currently married homeowners or soon-to-be married, it’s important to understand the homeownership rights when it comes to spouses and the state they reside in. Let’s breakdown spousal states versus community property states and how they impact the mortgage process for married couples.
Spousal States
In spousal states, which includes 41 states and the District of Columbia, common law property is used to determine homeownership of married couples. This means, if only one member of the married couple buys a home or acquires a property, it belongs solely to that person unless the property is specifically put in the names of both spouses.
However, when purchasing or refinancing a home, the other spouse who is not involved in the mortgage will still need to sign various legal closing documents to acknowledge they know about the loan but are not financially responsible for it. In the event of a divorce under these circumstances in a spousal state, the marital property would be divided in a way that is fair but not necessarily equal 50-50, which is called equitable distribution.
For the other spouse to be added to the mortgage and gain ownership rights, they will typically need to refinance.
Community Property States
When a married couple buys a new home or refinances in a community property state, both spouses are financially responsible for the mortgage, even if an individual isn’t listed on the loan. Therefore, both parties will need to be involved in the loan closing. These states include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.
Community property states allow a 50-50 split of homeownership for marital property and assets, including debt. This means one spouse’s debt may impact the Debt-to-Income (DTI) ratio when applying for a mortgage together.
To learn more about mortgages for married couples or other home financing information, contact your local Supreme Lending branch or connect with us today.
