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With more homes in need of updates, should you consider a Renovation Loan instead?

With a housing inventory still in low supply, and home prices still rising, you might think potential home buyers are running out of options. But that’s where Sierra Pacific Mortgage’s 203(k) Home Loans come in!

Empowered with a 203(k) home loan, local home buyers are now empowered to renovate their dream home in the location they desire!

Differences of a Renovation Loan vs HELOC

While a home equity line of credit (HELOC) is often the first choice for homeowners looking to finance an improvement project, it may not be the right option for everyone.

Today, I'll cover some reasons why a renovation loan from Sierra Pacific Mortgage may be a smarter choice over a HELOC.


  • A renovation loan is based on the future value of the home (after the home improvements are made).

  • Sierra Pacific Mortgage’s renovation department oversees your project in its entirety and will tackle any issues should they arise.

  • Department of Housing and Urban Development (HUD) inspectors are available to assist borrowers and contractors and to complete the necessary inspections needed for renovations.

  • A strict timeline must be followed with a renovation loan, making for a more efficient process.

  • All renovation funds are set aside for contractors in an escrow account, guaranteeing prompt payment.


  • A HELOC is based on the amount of equity in your home.

  • This loan acts as a second mortgage, which can cause problems if a homeowner wants to refi nance to a lower interest rate.

  • After tapping a home’s equity, there will be two monthly payments instead of one (with a higher interest rate on the HELOC).

  • Borrowers with a credit score of 620 will likely not qualify for a HELOC.

How do 203(k) Loans Work?

If you’ve never heard of 203(k) home loans, they work by borrowing more than the purchase price to allow for financing of the renovations. This means the cost of your upgrades are already baked in to the mortgage.

This can be a game changing option for a lot of buyers who know what location they would like to purchase in, but can’t afford a “move-in ready” home.

What are Most Desired Home Improvements? loan?

If you are thinking of purchasing a less than perfect home, or are thinking of making improvements on your current home, consider some of these highly desired improvements.*

*Data pulled from "New Poll Shows Remodeling Desires Remain Strong" ; published by Craig Webb, March 9, 2018, Remodeling Magazine,

In Need of Structural Changes or Just Updates?

Sometimes making your dream home a reality goes beyond changing the color of the front door. Big or small- Sierra's Renovations Product Suite may be able to help.

GO BIG - If you are thinking of making structural repairs, alterations to plumbing systems, heat/air conditioning, electrical or roofing, or pools- we got programs for you.

GO SMALL - Looking to just do remodel your outdated kitchen or bath with new flooring, appliances or cabinets? Yup, we can help with that too.

Where to Start


Give me a call to determine which renovation loan type may be right for your project. Contact me today for more information! If you're shopping or remodeling a home in Nevada, California, Colorado, Arizona or Texas, but are not sure where to begin, give me a call and get a free mortgage quote.

Our team's dedication to helping our clients prove how we stand out from our competition. Read our past client reviews and testimonials here.


I'm here to help- call me today!

Franco Manueli

Branch Manager & Residential Mortgage Loan Originator

NMLS #332420

2580 St. Rose Pkwy., Suite #230

Henderson, NV 89074

Office: (702) 420-2250

Fax: (855) 689-6691


Some products and services may not be available in all states. Programs, rates, terms, and conditions are subject to change without notice. Subject to verification of borrower qualifications, property evaluations and credit approval. Terms and conditions apply. This is not a commitment to lend and not all borrowers will qualify. Sierra Pacific Mortgage Company, Inc. may not be the lender for all products offered. Some loans may be made by a lender with whom Sierra Pacific Mortgage has a business relationship. Sierra Pacific Mortgage Company, Inc. NMLS #1788 and 988320. Nevada Commissioner of Mortgage License #3268, dba Sierra Pacific Mortgage Services, Inc. Not Licensed in New York. Texas License # 1788 and 11060-48154. Additional license info available at: Equal Housing Lender.

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