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Home Improvement Lending Center

Considering a Renovation Effort?

Get valuable tips and explanations to help you make informed decisions.

Whether you envision projects large or small, necessary or optional, let Wells Fargo help you move closer to improving your home.
A home improvement loan may help you pay for simple jobs or more complex remodeling to renovate your home. Financing may be tax deductible (consult your tax advisor on the deductibility of interest).1 And monthly payments are typically lower than credit cards or personal loans because the cost is spread over the entire length of your loan.
Perhaps you’d like to:
  • Update a home’s features or enjoy more living space while remaining in a familiar neighborhood.
  • Make a home more accessible or create a separate living area for another family member.
  • Personalize your home to fit your lifestyle by finishing a basement or adding an attic bedroom.
  • Buy a foreclosure or a short sale and plan improvements to make the home fit your needs and tastes.
Myth: If I buy a home, I won't have money to do repairs. Truth: The Wells Fargo Renovation Loan allows you to purchase your home and refinance repairs in one transaction.
 
With our renovation financing options, Wells Fargo has a variety of ways to finance both your mortgage and your home improvement efforts.

You may be able to pay for home improvements with a personal loan or other types of financing. However, these methods may have higher interest rates, which can result in higher monthly payments. Paying with cash ties up funds that could be in an interest-producing account for emergencies. Consider all of your options so you can make an informed decision.
Wells Fargo has a variety of ways to finance both your mortgage and your home improvements. Our renovation specialists are available to answer any questions.

Renovation lending for homebuyersShow Details

 

Purchase & Renovate Loan

Features

  • One loan to purchase a home and make renovations or repairs.
  • Conventional or FHA 203(k) loan options.
  • Available with a fixed- or adjustable-rate.
  • Includes single-family, one-to-four units, planned unit developments, and condominiums.

Benefits

  • More money. Loan amount is based on the home value after improvements are made.
  • Lower monthly payments. Costs are spread throughout the term of the loan, so your monthly payments may be lower than other financing options.
  • More choices. Look at properties you wouldn’t otherwise consider.
  • Speed. Start improvements right after closing.2
  • Tax deductibility. Interest may be tax deductible (Consult your tax advisor on the deductibility of interest).1

Considerations

  • Although FHA loans have the benefit of a low down payment, in many instances, FHA may be a more expensive financing option and should be considered after thoroughly evaluating all other product options that meet your credit qualifying and financial needs.
  • Financing may not be available for luxury items, such as a pool, hot tub or spa with all programs.
  • Requires hiring a contractor.


If you already own the home that you’re planning to improve, you also have options:

Refinance & Renovate programShow Details

 

Features

  • One loan to refinance your mortgage and make renovations or repairs.
  • Conventional or FHA 203(k) loan options.
  • Available with a fixed- or adjustable-rate.
  • Includes single-family, one-to-four unit, planned unit developments, and condominiums.

Benefits

  • Helpful for those with limited home equity. Loan amount is based on the home value after improvements are made.
  • Lower monthly payments. Costs are spread throughout the term of the loan, so your monthly payments may be lower than other financing options.
  • Speed. Start improvements right after closing.
  • Tax deductibility. Interest may be tax deductible (Consult your tax advisor on the deductibility of interest).1

Considerations

  • In many instances, FHA may be a more expensive financing option and should be considered after thoroughly evaluating all other product options that meet your credit qualifying and financial needs.
  • Financing may not be available for luxury items, such as a pool, hot tub, or spa with all programs.
  • Requires hiring a contractor.

Home equity loan or line of creditShow Details

 

Features

  • Choose between fixed- or variable-rate.2
  • Line of Credit offers access to funds as you pay down the line of credit balance without the need to re-apply.
  • Flexibility to convert all or a portion of your outstanding line balance to a fixed-rate advance.3

Benefits
Line of Credit

  • Control. Select the home equity closing cost option that meets your needs.4
  • Flexibility. Access available funds now and in the future, for large or small expenses.
  • Lower interest rates. Costs are lower than many other types of credit.
  • Tax deductible. Interest may be tax-deductible (Consult your tax advisor on the deductibility of interest).1

Loan

  • Convenience. Receive the full loan amount upfront to access funds for a one-time expense.
  • Security. Fixed interest rate and predictable monthly payment.
  • Tax deductible. Interest may be tax-deductible (Consult your tax advisor on the deductibility of interest).1
  • Simplicity. You keep your current mortgage intact.

Considerations

  • Appraisal is completed based on current value.
  • Home must already have sufficient equity to support improvement financing.

Cash-out refinanceShow Details

 

Features

  • One loan to refinance your mortgage and make renovations or repairs.
  • Available with a fixed- or adjustable-rate.
  • Includes primary and second/vacation properties.

Benefits

  • Convenience. Receive the full loan amount upfront to access funds for a one-time expense.
  • Simplicity. One application, one closing, one monthly mortgage payment.
  • Tax deductible. Interest may be tax-deductible (Consult your tax advisor on the deductibility of interest).1

Considerations

  • May only be beneficial when current interest rates are lower than your loan’s current rate.
  • Appraisal is completed based on current value.
  • Must have sufficient equity in your current home to support the new loan amount.
Find a property
These tips can help you to select a home to meet your needs.
  • Look for a house with “good bones,” that is structurally sound.
  • Have a reputable home inspector evaluate your home.
  • Talk to a knowledgeable REALTOR® to research recent sales prices of local houses.
  • Get an estimate of improvements. Search the internet for information about home improvement costs for your region of the country, as these numbers vary.
  • Add your improvements to the estimated value of your home to make sure you don’t over-improve. When it is time to sell, it will be easier to recoup your costs if your home is comparable in price to other properties in your neighborhood.
  • Consider how long you intend to live in a home, the time and effort required for your renovation, the availability of other homes in the area, and where you’ll live during the improvements, if necessary.
Paper with folded edge no writingDetermine what you want in your home and prioritize what’s at the top of the list using the house wish checklist
 
Foreclosure Properties: Consider buying a bank-owned property by viewing these listings
 
Keep at it until you find a home that you’ll enjoy living in that meets your needs and your budget.

Finding a contractor

Once you’ve found the home you want and your purchase offer is accepted, you’re ready to select a contractor. Depending on the type of home-improvement loan you choose, you may be required to have a contractor perform the work. Here’s why.

It’s best to get a few estimates before selecting a contractor for the job. Our renovation specialists cannot make these recommendations. Speak with friends and neighbors, as well as your REALTOR® .

When selecting a contractor:

  • Focus on the quality of work; don’t just pick the contractor offering the lowest price.
  • Request references from previous customers. Ask about:
    • the quality of labor and materials,
    • if the contractor cleaned up after the job,
    • whether they got the necessary permits, and
    • if the person would hire this contractor again.
  • Make sure you feel comfortable working with your contractor and you can communicate well with each other.
If you are applying for a Refinance & Renovate loan:
The contractor you select will submit a detailed estimate along with our validation documents to our renovation specialist.

We’ll also verify the contractor’s credentials to be certain that they have a reputable background. This is a detailed check that includes supplier references, looking for any contractor liens and bankruptcies, and confirm insurance and licensing.
We’re with you every step of the way to help you through the home improvement financing process.
 
Let us show you how easy it is to apply for mortgage or home equity financing with Wells Fargo. Click through the steps to learn what to expect from the home-financing process.
These are a few key differences you may expect with renovation financing.

Appraisal
  • The appraiser reviews the contactor’s bid, evaluates the home considering work to be completed and provides the lender with an after-improved value.
After Your Loan closes
  • After closing, the contractor can begin the work.
  • If you have an FHA 203(k) loan, periodic inspections of the work must be performed before funds are released (inspections may also be required for other loans.)
  • Our draw department will assist you throughout the draw phase.
  • At the end of the project a final inspection is performed and the final funds are disbursed. Then it’s time to enjoy your home!
For your mortgage needs:
1-866-383-8421
For your home equity needs:
1-888-667-1772

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Simple

 
Examples include:
  • Painting, wallpapering or tiling
  • Upgrading appliances or fixtures
  • Installing new carpet or flooring
 
 
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complex remodeling

 
Examples include:
  • Renovating an entire home
  • Fixing faults in the foundation
  • Adding living space
  • Upgrading plumbing or electrical systems
  • Designing a new kitchen
 
 
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FHA 203(k)

 
The Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD), offers a loan program for the rehabilitation and repair of properties. It is an important tool for community/neighborhood revitalization and for expanding homeownership opportunities. However, due to mortgage insurance requirements, FHA loans may cost more over the life of the loan than other home financing options.
 
 
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single-family

 
Second/Vacation and Investment properties are eligible.
 
 
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Line of Credit

 
Ability to access your line of credit at anytime with the Enhanced Access® Visa® credit card, Access Checks, or Wells Fargo Online® Banking2
 
 
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home inspector

 
An inspection can provide important protections before you finalize your purchase. After evaluating the home’s major systems, they inform you about any needed repairs.
 
 
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Add your improvements

 
Some projects — such as windows, roofing, or improved plumbing and electrical systems — may do little to add value to a home because they are expected to be standard in any property.
 
 
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inspections of the work

 
  • These are separate inspections conducted by a HUD-approved consultant. They’re different from the ones completed by the home inspector prior to home purchase.
  • These HUD inspections may be in addition to inspections performed by your local building inspector.
 
 
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draw

 
Once the inspector is satisfied with the work quality, we release the funds from the escrow account established for the improvement efforts. The checks are made out jointly to you and your contractor. Typically, funds are not released until work is completed.
 
 
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Closing cost options

 
Most home equity financing offers two options:
Have us pay your closing costs
  • You pay a higher interest rate to cover all required third party costs
  • This option is not available for financing greater than $500,000
Pay your closing costs
  • You pay a lower interest rate
  • Pay with your loan proceeds, line of credit, or a check

    For details, please call 1-888-421-4672.
 
 
 
If you are a servicemember on active duty, prior to seeking a refinance of your existing mortgage loan, please consult with your legal advisor regarding the loss of any benefits you are entitled to under the Servicemembers Civil Relief Act or applicable state law.
1 The interest on any portion of credit greater than the fair market value of your property is not tax deductible for Federal income tax purposes. You should consult your tax advisor regarding the tax deductibility of interest and charges.
2 Restrictions apply
3 There is no limit on the maximum amount of a fixed rate advance taken at origination (up to your credit limit). The minimum fixed rate advance amount is $10,000. After account opening, additional fixed rate advances may not exceed $250,000 of the aggregate principal balance or your credit limit, whichever is less. You may request up to 2 fixed rate advances each year with up to 3 fixed rate advances at one time. Fixed-rate advances have a term of 1 to 20 years, depending on the amount advanced; except that for Texas homestead secured accounts, the term is 1 to 10 years.
4
The Annual Percentage Rate (APR) is variable and is based on the highest Prime Rate published each day in The Wall Street Journal Money Rates Table (the "Index"), plus a margin. The Index as of the last change date of December 17, 2008, is 3.25%. As of April 11, 2014, current margins for lines of credit from $20,000 to $500,000 secured by owner-occupied properties with 70% combined loan-to-value range from 3.750% to 0.375% resulting in corresponding variable APRs ranging from 7.000% to 3.625%. For larger loan amounts, please contact us. Minimum APR is 1.00%; maximum APR is 18%. The quoted APR includes a 0.375% discount for a qualified Wells Fargo PMA® Package relationship and does not include costs. Your APR will be based on the specific characteristics of your credit transaction, including evaluation of credit history, CLTV, property type, amount of credit, and term. Texas homestead properties are limited to an 80% combined-loan-to-value or 50% of fair market value, whichever is less. There is no annual fee or prepayment fee for accounts secured by Texas homestead properties. All other accounts are subject to a $75 annual fee which is waived for the first year. If provided for in your original contract, the fee will be waived thereafter if you maintain a minimum average daily balance of $20,000 or more for twelve consecutive months previous to the annual fee assessment date. The prepayment penalty fee will be $400 for lines of credit $20,000 or greater. Opening fees may be paid to Wells Fargo, its affiliates or third parties and range from $19 to $9,000 depending on the property type, the state in which the property is located and the amount of credit extended and include applicable state or local mortgage taxes. The Line of credit has a Draw Period of 10 years plus 1 month, after which you will be required to repay any amounts borrowed within a 15- or 20-year term, depending upon your account balance. Only one qualifying Wells Fargo PMA® Package relationship discount per new Wells Fargo home equity line of credit will apply. To qualify for the discount, customers must maintain a PMA package checking account and continued automatic payments from a Wells Fargo checking or savings account. If the qualifying checking account is closed, or if the automatic payment is not selected or is cancelled at any time after the credit account is opened, the interest rate and corresponding monthly payment may increase. Additional restrictions, limitations, and exclusions may apply; please contact a Wells Fargo banker for further details. The PMA package is free of the $30 monthly service fee for each month the statement-ending balances in qualifying deposit accounts, credit accounts (10% of outstanding eligible mortgages), and brokerage accounts (available through Wells Fargo Advisors, LLC), total $25,000 or more. Deposit accounts, including PMA Prime Checking account, offered by Wells Fargo Bank, N.A. Member FDIC. Hazard and, if applicable, flood insurance is required.Checking account, offered by Wells Fargo Bank, N.A. Member FDIC. Hazard and, if applicable, flood insurance is required.
Equal Housing Lender