Renovation & Home Improvement Loans in St. Augustine, FL

Buying a house that needs work, or updating one you have owned for years, does not always mean paying for repairs out of pocket. Renovation financing can roll the cost of improvements into a mortgage based on what the home will be worth afterward. If you are planning a remodel in St. Augustine, here is how the main programs differ and what contractors, bids and permits have to do with your loan.

Want a straight answer?

Call to speak with a licensed loan officer about renovation loans in St. Augustine. Programs vary by borrower, property and investor.

Call (888) 912-6746 Apply Online Now

Housing age and remodeling in St. Augustine

50%Homes built before 1980

1980Median year built

702Home improvement loans in St. Johns County (2024)

$439,800Median home value

Older housing is common in St. Augustine: 50% of homes predate 1980, and the median home was built in 1980. Lenders made 702 home improvement loans in St. Johns County in 2024.

FHA 203(k): limited and standard versions

The FHA 203(k) program lets you finance the purchase or refinance of a home together with the cost of repairs in a single FHA-insured mortgage. It comes in two versions.

The limited 203(k) is meant for smaller, non-structural projects such as new flooring, a kitchen update, a replacement furnace or fresh paint. The standard 203(k) handles larger work, including structural repairs, additions and major system replacements, and it requires a HUD-approved 203(k) consultant who inspects the home, writes up the work and oversees progress. Both versions follow FHA guidelines on property use and eligible improvements, and you may qualify subject to credit approval.

Start hereApply Online Now

Start your application in a few minutes. A licensed loan officer reviews it and follows up with your options.

Takes a few minutes
Reviewed by a licensed loan officer
No obligation to proceed

Prefer to talk first? Call (888) 912-6746. Applying is not a loan approval or commitment to lend; programs vary by borrower, property and investor. ClearPoint Mortgage Advisors, NMLS #173855. Properties in FL, NY, NJ, PA, CT and VA only.

Conventional renovation loans and equity-based options

Conventional renovation loans follow Fannie Mae or Freddie Mac guidelines and, like the 203(k), base the loan on the home's expected value after improvements. They can be used for primary residences and, in some cases, second homes or investment properties, and they may allow a wider range of upgrades.

If you already have solid equity and a mortgage you want to keep, a HELOC or home equity loan can fund a remodel without touching your first mortgage. A cash-out refinance replaces your current loan with a larger one. Each path has different costs and risks, and your home secures every one of them.

Who this tends to fit

You want to update an older home you already own without paying for the work in cash
You have strong equity and are comparing a HELOC, home equity loan or cash-out refinance
You are buying a fixer-upper that needs repairs before or soon after you move in
You want to address safety issues such as old wiring, lead paint or a failing roof
You have a smaller cosmetic project such as flooring, paint, cabinets or appliances

Local offices and Florida rules to know

Property assessment: St. Johns County Property Appraiser's Office.

Florida property tax relief: Owners who make a Florida property their permanent residence (or a dependent's) may qualify for the homestead exemption, applied for through the property appraiser in the county where the property is located.

Contractor bids, permits and older homes in St. Augustine

Renovation lenders want a clear picture of the work before closing. Expect to provide written bids from licensed and insured contractors, with materials and labor itemized by room or system. The lender and appraiser use these bids to estimate the finished value.

Permits matter too. Structural changes, electrical, plumbing and roofing work usually require local permits, and the lender may ask for proof before releasing funds. Older homes can hide surprises such as outdated wiring, lead-based paint or failing sewer lines, so many programs build a contingency reserve into the budget to cover issues found once walls are opened.

Before you call

Information on local permits needed for the planned work
An estimate of how much contingency you want for surprises in an older home
Contractor license numbers, insurance certificates and references
Income, asset and credit documents for every borrower
Itemized written bids from licensed and insured contractors

Questions St. Augustine borrowers ask about renovation loans

How are renovation funds paid to my contractor?

Repair money is usually placed in an escrow account at closing rather than handed to you directly. As the contractor completes portions of the work, they request payment, an inspection or consultant review confirms progress, and the lender releases funds. This protects you from paying for unfinished work and keeps the project tied to the budget approved in your loan.

Do I need permits for work financed with a renovation loan?

Usually, yes. Structural, electrical, plumbing, mechanical and roofing work typically requires permits from your local building department, and lenders often ask for proof before releasing funds. Unpermitted work can create problems with inspections, insurance and resale. Your contractor normally pulls permits, but you should confirm who is responsible in your contract and check local requirements before work begins.

Is a HELOC or cash-out refinance better than a renovation loan?

It depends on your equity, your current mortgage and the size of the project. If you have substantial equity and want to keep your existing first mortgage, a HELOC or home equity loan may be simpler. A cash-out refinance replaces your first mortgage entirely. Renovation-specific loans often suit buyers or owners with less equity. Ask a lender to compare official Loan Estimates for each option you are considering.

Can I use a renovation loan on an investment property?

FHA 203(k) loans are generally limited to owner-occupied homes, including some two-to-four unit properties where you live in one unit. Conventional renovation loans may allow second homes or investment properties in some cases, subject to investor guidelines. Eligibility depends on the property type, how you plan to use it and your overall financial profile, so ask a lender which programs fit your situation.

Talk to a licensed loan officer

Get answers about renovation loans for a home in or around St. Augustine. Subject to credit approval; programs vary.