Renovation
Renovation Loans:
Up to 85% LTC
Hard money funding for major renovations on investment property, $100K to $2M. It works like a construction loan on an existing building, with fewer draws.
- Max LTC
- 85%of property + renovation
- Max ARV
- 70%of after-renovation value
- Loan Size
- $100K–$2M
- Term
- 12–18 Mo
- Payments
- Interest-Onlyon funds drawn · reserve available
- Borrower
- Entity OnlyLLC or corporation
Maximum leverage shown. Actual LTC/ARV may be reduced based on property location, appraisal, market conditions, borrower experience, credit, liquidity, project scope, property type and other underwriting factors. Terms subject to lender approval and program guidelines.
How Your Property Is Treated
Renovation loans are built around an existing building, whether you are buying it or already own it.
You are buying the property
We fund the purchase at closing and hold the renovation budget back for draws, all in one loan, up to the lower of 85% of purchase plus renovation cost or 70% of the after-renovation value.
You already own the property
Your equity in the property can count toward your required equity. For a property you bought recently, it is valued at the lower of your documented purchase price or cost basis and the current appraised value. If you have owned it long enough, typically up to 12 months, we may recognize the full current appraised value. All property value and equity credit are subject to appraisal and underwriting.
We fund the renovation budget, and the loan can also pay off an existing mortgage on the property.
Fewer Draws Than a Build
A renovation works like a construction loan on a building that is already standing. The structure is there, so the budget is smaller and the work moves in fewer stages. The renovation budget is held back at closing and released in draws set to your scope of work, so the number of draws is custom to each project.
Each draw is released once a third-party inspection service verifies the completed work, the same way it works on our construction loans. Interest is charged only on funds disbursed, and an interest reserve can be built into the loan.
How leverage works · hypothetical
| Purchase price | $350,000 |
| Renovation budget | $80,000 |
| Total cost | $430,000 |
| 85% of cost | $365,500 |
| 70% of $560,000 ARV | $392,000 |
| Max loan (the lower) | $365,500 |
You bring the other $64,500 of cost, plus closing costs. Illustration only, not a quote. Maximum leverage shown; actual LTC/ARV may be lower.
What We Finance
Eligible
- 1–4 unit residential investment property
- Small mixed-use properties
- Modular and manufactured homes
- Value-add renovations to raise rents or reposition
- Renovations before a long-term refinance
- Borrowers closing in an LLC or corporation
Not Eligible
- Owner-occupied homes or a home you will live in
- Loans to individuals (business entities only)
- Borrowers involved in open liens or pending litigation
- Ground-up builds (see Construction)
- Deals with no exit plan
What to Have Ready
The more of this you send up front, the sooner we can issue a term sheet.
- Entity documentsArticles, operating agreement, EIN
- Deed or purchase contractPlus any existing loan payoff
- Scope of workWhat is being renovated, room by room
- Itemized budgetLine by line, this sets the draws
- Contractor detailsLicense, insurance, and past projects
- Exit planSell, or refinance to a rental loan
Frequently Asked Questions
How is this different from a construction loan?
It works the same way, with the budget held back and released in draws, but on a building that is already standing. The budget is usually smaller and there are fewer draws.
How is this different from a fix & flip loan?
Fix & flip is built for buying, improving, and selling. Renovation fits investors who plan to hold, reposition, or refinance the property after the work is done, including a property you already own.
How much can I borrow?
Up to the lower of 85% of property plus renovation cost or 70% of the after-renovation value, from $100,000 to $2,000,000.
Can I renovate a property I already own?
Yes. Your equity can count toward the project, valued at the lower of your cost basis and current appraised value if recently bought, or at the current appraised value once seasoned (typically up to 12 months). The loan can also pay off an existing mortgage on the property.
What happens when the work is done?
Most investors sell or refinance into a long-term DSCR rental loan, arranged through our partner lender*.
Ready to Fund Your Next Project?
Tell us about the deal. We will come back with a term sheet or a straight answer.
Loan Program Disclosures
LTC / ARV & Underwriting Disclaimer
Maximum Loan-to-Cost (LTC) and After-Repair Value (ARV) percentages shown are guidelines only and represent maximum potential leverage, not guaranteed loan terms. Actual leverage may be reduced based on the overall risk profile of the borrower, property, and project.
Factors that may result in lower LTC and/or ARV limits include, but are not limited to: rural or sparsely populated locations; declining or unstable property values identified by the appraisal or other market data; excessive housing inventory or extended marketing times; limited comparable sales; unique, specialized, or non-conforming properties; low marketability or liquidity; high renovation or construction costs relative to property value; extensive or complex rehabilitation; borrower experience; credit profile; liquidity and reserves; project feasibility; appraisal findings; title or property-condition concerns; and other geographic, market, collateral, or underwriting risks.
Loan amount, LTC, ARV, interest rate, fees, term, and other conditions are determined on a case-by-case basis and are subject to lender underwriting, appraisal, due diligence, program requirements, and final approval. Programs, guidelines, and terms are subject to change without notice. Not all borrowers or properties will qualify for maximum leverage.
Loan Amount
Loan amount is limited to the lower of the stated percentage of total project cost (LTC) or of the after-repair value (ARV). Examples on this page are hypothetical and are not a quote.
DSCR Rental Loans
* DSCR rental loans are arranged through a partner lender and are not funded directly by VeeCasa Funding. Terms and approval are set by that lender.
Business-Purpose Lending
VeeCasa Funding LLC makes loans for business and investment purposes only, secured by non-owner-occupied real estate, to business entities only. These are commercial loans. They are not consumer mortgages, are not intended for personal, family, or household use, and are not subject to NMLS or SAFE Act licensing. Loan programs, terms, leverage, and availability are subject to underwriting, property review, and credit approval, and may change without notice. Not a commitment to lend.
VeeCasa Funding LLC · 301B Amboy Ave, Woodbridge, NJ 07095 · (732) 314-1874