Due to the nature of any home improvement or renovation loan, additional documentation and information is required to process your loan. You will be qualified at a maximum interest rate unless you lock your permanent loan with either a "hard lock" or our "Smart Lock with Float Down Option" which may reduce the loan amount available to you. If you are doing a Purchase Home Improvement Loan, I will qualify you including your current residence, if any, unless that property has been sold and closed prior to the closing of your new loan. We will, however, allow a fair market rent calculation or signed lease to be used to offset the PITI payment on your current residence. In addition to the standard requiring documentation of income, assets, and liabilities (unless you elect a low or no documentation permanent loan) we will need the following documentation:
In addition to the above listed improvement related documentation items, We will require your contractor to be underwritten. This will require a Uniform Builder Application, which is included with this package. We will only make home improvement loans when the builder has demonstrated significant and or relevant experience in successfully improving residential properties and we will only recognize one builder/contractor per project. Along with the builder’s application, the following must be included:
We will also order a trade credit report on the builder prior to his approval. Please understand that we require this builder approval process as a consumer protection and to ensure the project is completed in a timely and professional manner adding significantly to your home’s value for years to come.
I have a list of documentation needed to process your loan.
There is a new page detailing construction loan fees.
I have detailed information on extended interest rate locks with a float down option.
I have a page on calculating mortgage qualification ratios.
I have included detailed Frequently Asked Questions and common misconceptions about the process of building your home with a construction/perm loan.
One of the questions I frequently get from my clients is about finding a qualified and reliable contractor. After a great deal of research, I do recommend Reliable Remodeler. I have personally used their free service and was very pleased with the outcome. Please complete their contractor referral form for up to 4 local pre screened contractors.
Prequalify for your Construction Loan.