Renovation Loans

With a Renovation Loan from Draper and Kramer Mortgage Corp., you get a loan for the purchase price of the house plus the expected costs of the renovation - all in one package. Purchase or refinance a home and make the upgrades you want and take up to 6 months to complete the project. Renovation Loans are one of the more complicated mortgage programs available, so while this step-by-step guide is here to help give you an overview of the process, it is important to work with a your loan officer from start to finish to ensure a smooth process.


Contractor Selection

  • Determine the cost to complete your project
  • Determine which permits are required for your project
  • Get quotes from a reputable, licensed and insured residential contractor


Loan Application

  • Determine your financing options with your Loan Officer
  • Read and sign each loan document and submit the necessary personal information and documentation needed to move forward


Loan Processing

  • The loan processor will put together your entire loan package so that it may be underwritten
  • The processor reviews your credit report and verifies your debts, payment histories and employment status
  • The contractor on the project will then need to submit a proposal that covers the scope of repairs or renovations to the property
  • Finally, an appraisal will also be conducted with the scope of the renovation work to be done included



  • The Underwriter reviews your application, documentation, financial information, sales contract, contractors documents and proposal, appraisal, and title
  • The Underwriter will then make the credit decision whether to approve the loan


Loan Closing

  • At closing you will sign all the final documents and the loan will be funded
  • Typically your first mortgage payment will not be due until the second month after your closing date


Renovation Begins

  • Within 30 days of closing you will receive a welcome kit from your Draw Administrator
  • The project must begin within 30 days of closing and must be completed within 6 months


Obtaining a Draw

  • Prior to the first draw you must have any required building permits in place and when a stage of the plan is complete you will call to request a draw
  • Your Draw Administrator will require an inspection to be performed and upon a clean report a check will be written jointly to you and your contractor


Project Completion

  • The draw process may be repeated until the process is complete
  • A final inspection and title update will be obtained by the Draw Administrator
  • A Certificate of Occupancy/final municipal inspection is required for any permits previously issued