Since 2008, Chinese government has invested a lot of money to rehabilitate the badly stricken or dilapidated houses in rural areas. However, many issues exist in the implementation process, such as poor regulatory effect, improper use of funds, lack of fairness and openness, and so on. By studying the policy, doing on-site interview and questionnaire survey of the implementation situation of renovating dilapidated houses in the typical areas of west, the authors have an overall understanding of the current situation and influencing factor of western rural reconstruction. With the help of SPSS software for factor analysis, they took 6 public factors which are labeled as the use of funds factor, object selection factor, the organization management factor, grassroots operation factor, objective problem factor, supervision factor, and specific recommendations are given for each factor. The research aims at providing support for government departments to make policies and promote reconstruction funds a rational and effective use.