Renovation Loans in Chattanooga, TN

Conventional Renovation Loans

A Practical Solution for Modern Home Improvements

Conventional renovation loans allow borrowers to roll the cost of repairs or updates into a single mortgage. This financing is ideal for those purchasing a home that needs cosmetic or structural work, or for homeowners refinancing to fund a renovation project.



Home Loans With Shelly partners with borrowers throughout the process — from project planning to completion — ensuring every step meets lender requirements. Funds for improvements are typically distributed through scheduled draws as work progresses, keeping projects on track and budgets clearly managed.

When to Consider a Conventional Renovation Loan

These loans are perfect for projects such as kitchen remodels, roof replacements, energy-efficient upgrades, or room additions. With competitive interest rates and flexible terms, they provide a streamlined alternative to juggling multiple loans or high-interest credit lines for home repairs.

FHA 203(k) Loans

Restoring Homes and Building Equity

The FHA 203(k) Loan is a powerful financing option for buyers who want to purchase a home that needs repairs or for homeowners ready to improve their existing property. Backed by the Federal Housing Administration, this loan bundles the home’s purchase price and renovation costs into one manageable mortgage.



At Home Loans With Shelly, clients receive clear guidance on both Standard and Limited 203(k) programs. The Standard version suits extensive structural repairs, while the Limited 203(k) is designed for smaller updates like flooring, fixtures, or paint.

Why FHA 203(k) Loans Are Popular

Because of their accessible qualification standards, FHA 203(k) loans are particularly appealing to first-time buyers and those working with limited savings. They make it possible to transform homes in Chattanooga’s established neighborhoods without requiring separate construction financing. The result is a revitalized property and improved long-term equity — all within one loan.

USDA Renovation Loans

Supporting Repairs in Rural and Suburban Homes

For buyers or homeowners in USDA-eligible areas surrounding Chattanooga, the USDA Renovation Loan offers an affordable way to finance home repairs and modernization. Backed by the U.S. Department of Agriculture, these loans combine purchase and renovation costs under one affordable mortgage.

Shelly helps clients verify property and income eligibility while structuring the loan to fit their repair needs — from essential updates like plumbing or roofing to more cosmetic improvements that enhance comfort and efficiency.

A Smart Option for Growing Communities

USDA renovation loans are designed to help strengthen rural and suburban housing markets by improving livability and energy efficiency. For Chattanooga-area buyers seeking to update a property without high out-of-pocket costs, this program offers a reliable, community-focused solution.

Streamlined Financing From Start to Finish

How the Process Works

Each renovation loan type involves specific steps for approval, contractor selection, and fund disbursement. Home Loans With Shelly simplifies this process by coordinating between lenders, appraisers, and contractors — ensuring all documentation meets program standards.

Borrowers receive clear timelines outlining each project phase, from application and approval to renovation draw requests and final inspection. This structured approach prevents delays and keeps both financing and construction moving smoothly.

Transparency and Local Expertise

Because Shelly understands Chattanooga’s housing market, she helps borrowers identify renovation opportunities that make financial sense. Whether revitalizing a historic home downtown or improving a suburban property, clients receive accurate estimates and local insight that supports wise investment choices.