Financing a Home Addition
Adding on to your home can be an exciting project but financing
a home addition can be difficult. Loans to pay for a home addition are a variation of the "One Time
Close" construction/perm product. The
major advantage
of a remodeling loan in financing a home addition is that we lend against
the finished or "as completed" value of the property rather than the current
value of your home as most other lenders do. With other programs, you are out of
luck if you do not have enough equity to complete the home addition. Email
me with
financing a home addition questions.
The financing a home addition loans have two uses:
If you are purchasing a property that would be perfect if
it had....... The first disbursement acquires the property and subsequent disbursements
occur at
predetermined points in the construction process. After construction, the loan
modifies into the permanent
loan of choice saving the cost of a second closing.
If you are remodeling an existing property because it
would be perfect if it had.... The first disbursement refinances any liens
against the property and advances the contractor any up front costs. Subsequent
disbursements and modification follow the above process.
-
One Time Close Construction/Perm
Single Rate. "One Step" program which protects you
against increasing rates and extended lock fees. Interest only fixed rate
during construction and modifies into a permanent loan after construction.
-
One Time Close Construction/Perm Prime Rate
Based. "Two Step"
program allows
you to borrow up to 95% of your total cost for a Principal Residence. Based on the Prime Rate during the
construction period with interest only collected on funds disbursed. Allows a 12 month construction phase.
Under the above programs, you may act as your
own General Contractor if the remodeling costs are less than $50,000 and the
"footprint" of the home is not changed. If your project is large or
will change the foundation we will require a fixed price contract with a
licensed contractor.
Other loans which can be used for remodeling a home. We offer Second Trust or
Equity
Line of Credit I have included a list of the
construction documentation needed
to process your Remodeling
Loan , a section on Frequently Asked
Questions, a section on remodeling loan draw
schedules, and information on construction fees.
Home addition loans loans may require the use of a contractor. I have a section on
contractor requirements and contracts.
A newsletter giving a
detailed description of
financing a home addition
programs available by email.
Remodeling loans are complex. I have
attempted to give you basic information, but it is almost impossible to answer
all questions here. Please call or send me an
email
with the specifics of your situation.
We offer the ability to qualify and close your loan into several
unique programs for borrowers with non traditional income or asset
situations. Please visit my No Docs
page.
Be sure to visit the Mortgage
Library. As a Certified Mortgage
Planning Specialist, I offer an analysis of
your situation today can make suggestions on how small changes in how
your consumer and mortgage debt is structured today can have a life changing effect in the years
to come. Read more
about this free, no obligation service.
New! View
my
Wealthbuilder presentation and learn the safe way to manage your debt
and fund your retirement.
I hope the information on this page was useful to you. Please scroll down
to view my
Mortgage Market Guide. It is a weekly publication explaining the financial markets
from a consumer's perspective that is available on this website or by
email subscription. I have nearly 8,000 subscribers today and would be happy to have you as
well. Your email address will never be used for any other purpose.
Prequalify for Financing
a Home Addition.
| 
