A jumbo renovation loan is used when a home’s updates — either on a purchase or refinance — costs more than the conforming conventional loan limit, which changes annually in the county you live in.
If you’re wanting to make basic renovations or repairs to your home, such as in the kitchen, bathroom or bathrooms (and many others locations around the house), a jumbo loan could be the solution. That’s because the updates are cosmetic. Any structural issues that require upgrades would need a different renovation loan.
Any costs must go to areas attached to the home AND add value to it.
Jumbo loans offer a 30-year fixed rate option, and whether you're buying or refinancing, all renovation costs are rolled into the mortgage so there’s only one monthly payment.