5% Down Renovation Loans

Purchase or refinance a home and finance renovations with a single loan, using as little as 5% down.

What Is a 5% Down Renovation Loan?

A 5% down renovation loan allows you to combine the purchase or refinance of a home with the cost of improvements into one mortgage.


Instead of securing separate financing for renovations, this program simplifies the process by including both in a single loan with one monthly payment.


This type of loan is commonly structured as a conventional renovation program and offers more flexibility compared to some government-backed options.

Key Highlights

Who This Loan Is Best For

A 5% down renovation loan may be a strong fit for:

Buyers purchasing homes that need updates or repairs

Homeowners refinancing and upgrading their current property

Buyers who want more flexibility than FHA renovation programs

Borrowers looking to avoid multiple loans or high upfront costs

If you are willing to take on a property that needs work, this program can expand your options and increase long-term value.

How It Works

Renovation loans follow a structured process to ensure funds are used properly:

Loan approval based on purchase price and renovation scope

Contractor bids reviewed and approved

Renovation funds held in escrow

Funds released in stages as work is completed

Final inspection confirms project completion

Our team helps coordinate communication between you, your contractor, and the lender throughout the process.

Qualification Overview

Approval is based on factors such as:

Credit score and history

Income and employment stability

Debt-to-income ratio

Property type and occupancy

Contractor approval and project scope

Because renovation financing adds complexity, additional documentation may be required compared to a standard mortgage.

Why Work With Cody Financial

Renovation loans involve more moving parts than traditional financing. We help simplify the process by guiding you through each step, coordinating documentation, and ensuring timelines stay on track.


From initial planning through final inspection, our goal is to keep everything organized and clearly communicated.

Planning to purchase and renovate a home?

Loan programs, rates, terms, and qualification requirements are subject to change and borrower approval.