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Loan Modification

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.

Financing a Home Addition Prequalify for Financing a Home Addition.


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Extensive consumer information on construction,remodeling, first time homebuyer,and no documentation mortgages.