Construction & Renovation Loans - Build or Remodel in NJ

Financing for Your Vision, From the Ground Up

Whether you're starting fresh with a custom home or turning a fixer-upper into your dream house, specialized loan programs can make it possible. At Elias Mortgage, we help New Jersey homeowners-and soon-to-be homeowners-access construction and renovation loans that fit their goals, timelines, and budgets.



From construction-to-permanent financing to FHA 203(k) renovation loans, we guide you through each step, making sure the funding aligns with your vision and the legal details are handled with care.

Building a Home? Here's What You Need to Know About Construction Loans

If you're planning to build a new home in New Jersey, a traditional mortgage won't cut it. Construction loans are designed to cover the cost of building from the ground up-materials, labor, permits, and more.


One common option is a Construction-to-Permanent Loan, which starts as a short-term loan during construction and automatically converts to a regular mortgage once the home is complete.

These loans typically require:

  • Approved architectural plans and a licensed builder
  • Down payment of 10-20%, depending on the lender and project
  • Interest-only payments during construction
  • Appraisal based on future value

Construction loans come with more moving parts-but that's where we come in. Our team not only coordinates financing but also helps review builder contracts, draw schedules, and lien documentation with a legal eye. If something feels off, we'll catch it before you sign.

FHA 203(k) Renovation Loans: Buy & Fix in One Mortgage

Got your eye on a fixer-upper in Middlesex County? The FHA 203(k) loan might be the tool you need. This government-backed loan lets you combine the purchase price and renovation costs into a single mortgage-with just 3.5% down on the total amount.

It's perfect for buyers who want to:

  • Purchase an older home and update it
  • Finance essential repairs or upgrades
  • Roll renovation costs into one monthly payment

Key facts about 203(k) loans:

  • Minimum $5,000 in repairs required
  • Licensed contractors only (no DIY)
  • Funds are held in escrow and released as work is completed
  • Two versions: Streamline (for minor/non-structural) & Standard (for bigger projects)

If the home needs work-and you don't want to use credit cards or cash out of pocket-203(k) financing gives you room to upgrade wisely.

A two-story house under construction with white block walls, exposed wooden framing, and a partially built front porch.
Building with dollar sign and upward arrows.

Other Renovation Loan Options

Not every buyer wants an FHA-backed loan. If you're working with good credit and want more flexibility, our lenders may also offer:

  • Fannie Mae HomeStyle® Loans
  • Freddie Mac CHOICERenovation® Loans

These programs work similarly to 203(k) but follow conventional loan guidelines and can cover a wider range of properties or upgrades. Ideal for owner-occupied homes, second homes, or even certain investment properties (depending on the lender).



Already own a home and just want to remodel? Consider a Home Equity Loan or HELOC.

How the Process Works - and How We Help

Construction and renovation loans are more detailed than a regular home mortgage-but that doesn't mean they have to be difficult.


We'll walk you through every step, including:

  • Reviewing plans, permits, and contractor bids
  • Coordinating appraisals based on future value
  • Overseeing draw schedules and contractor payouts
  • Ensuring your contracts protect your interests

For 203(k) loans, we'll help connect you with 203(k) consultants if required, and keep your timeline moving forward. Having a broker who also understands legal documents means less risk and more clarity.

Two overlapping speech bubbles with a question mark inside one.

FAQ: Construction & Renovation Loan Questions

  • Can I use a 203(k) loan as a first-time buyer?

    Yes-203(k) loans are a great tool for first-time buyers, especially if you want to buy a more affordable home and invest in upgrades. Just make sure you're comfortable managing the renovation process.

  • How much can I borrow with a construction loan?

    Lenders usually base your loan amount on the "as-completed" value of the home and may finance up to 80-90% of the total project cost, depending on your credit and down payment.

  • Do I need a big down payment for construction loans?

    Typically yes-10-20% is common, although some FHA construction loans allow for as little as 3.5% down if available through your lender.

  • What renovations can a 203(k) loan cover?

    Any permanently attached upgrades-new kitchens, bathrooms, roofs, HVAC systems, additions, flooring, landscaping, and even structural repairs. It won't cover luxury items like pools or outdoor kitchens.

  • How long do I have to finish a 203(k) project?

    Most lenders give you up to 6 months to complete renovations under the 203(k) program, though timelines can vary depending on your contractor and scope.

Let's Bring Your Project to Life

Building or remodeling takes more than just vision-it takes the right financing, coordinated planning, and an experienced team on your side. Whether you're breaking ground or reviving a historic home, we'll help you get the loan that makes it possible.