PASSYCAPITAL

Renovation & Rehab

Finance your value-add projects with high-leverage renovation loans. Up to 90% of purchase price and 100% of rehab costs covered.

Renovation financing lets you acquire and improve properties in a single loan. Whether you're upgrading unit interiors in a multifamily, converting an office to residential, or repositioning a retail center, the right rehab loan covers both acquisition and construction costs.

Our lender network specializes in value-add strategies. They understand construction budgets, scope of work documentation, and the difference between cosmetic and structural renovation.

Most renovation loans are structured as short-term, interest-only facilities with draws against the rehab budget. Once the renovation is complete and the property is stabilized, we help you refinance into permanent financing.

$1M – $50M+

Key Features

High Leverage

Up to 90% of purchase price and 100% of rehab costs. Minimize your equity requirement.

Interest-Only

Pay interest only during the renovation period. Payments based on drawn balance.

Rehab Draws

Funds released as work is completed. Inspections verify progress before each draw.

All Scope Levels

From cosmetic updates to full gut renovations. Light, medium, and heavy rehab programs.

Fast Approval

Experienced renovators can close in 2-3 weeks with a clear scope of work.

Refinance Path

We plan your exit to permanent financing before the rehab even starts.

Ideal For

Multifamily value-add (unit upgrades, amenity additions)

Commercial property repositioning

Adaptive reuse and conversion projects

Fix and hold strategies

Properties with significant deferred maintenance

Investors buying below market value and adding value through renovation

Frequently Asked Questions

What is the difference between a renovation loan and a construction loan?

Renovation loans finance improvements to an existing structure — cosmetic updates, unit renovations, mechanical upgrades, or even gut rehabs. Construction loans finance ground-up building or projects where the existing structure is demolished. The key difference is that renovation loans typically have shorter timelines (6-18 months vs. 12-24 months), faster closings, and are underwritten based on both as-is and after-repair value.

How much of the renovation cost will a lender cover?

Most renovation lenders finance up to 100% of rehab costs and up to 90% of the purchase price. Total loan amount is also capped at 70-75% of the after-repair value (ARV). For example, on a $2M purchase with $500K in rehab and a $3.5M ARV, a lender might finance $1.8M of purchase (90%) and the full $500K rehab, for a total loan of $2.3M (65.7% of ARV).

Do I need a detailed scope of work to get a renovation loan?

Yes. Lenders require a detailed scope of work (SOW) that lists every renovation item, associated costs, and a realistic timeline. The SOW is used to set the draw schedule and the after-repair value appraisal. A contractor's bid or estimate is typically required. We can help you structure your SOW to meet lender requirements.

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