Home Improvement Loan
Home Improvement Loan products are my specialty. Homeowners need
a better way to finance home improvement on their home. In the past, homeowners wishing to finance
improvement had few alternatives. These were 1) Pay for the home improvement in
cash. 2) Do a cash-out refinance based on the current value. 3) Take out an equity line based
on the current value. This
places the burden of funding the home improvement on the homeowner who will
not be reimbursed for the home improvement until the loan closes. Home
improvement loan products solve this problem. E mail with questions about your
mail with questions about your home improvement loan
am a home improvement loan mortgage broker and represent 22 of the largest construction lenders in the
market. As a broker, I work for my client and not the lender, taking the time to
understand your situation and placing your home improvement loan with the lender whose programs
matches your needs. I am able to give you unbiased
advice and support throughout the process. Home improvement loan products are a specialized part of mortgage banking and most brokers do not
have the experience to guide you through this complex process. I have given you basic information
here but please call to discuss your individual project. Construction lenders offer two types of product characterized by how they base
interest rates during the construction phase. I describe these
as “One Step” and “Two Step”
The home improvement loan is a variation of the "One Time Close" home improvement loan construction/perm product. The advantage of a home improvement loan is that we lend against the finished or "as completed" value of the property
The home improvement loan has two uses:
If you are purchasing a property that would be perfect if....... The first disbursement of your home improvement loan acquires the property and subsequent disbursements occur at predetermined points in the construction process. After construction, the loan modifies into the permanent loan saving the cost of a second closing.
If you are remodeling your home because it would be perfect if.... The first disbursement of your home improvement loan refinances any liens against the property and advances the contractor any up front costs. Subsequent disbursements and modification follow the above process.
There are several programs designed for remodeling:
Under the above programs, you may act as your own General Contractor if the costs are less than $50,000 and the "footprint" is not changed. If your project is large or will change the foundation we will require a fixed price contract with a licensed contractor. I have a section on contractor requirements and contracts.
We also offer a Home Improvement Second Trust
NEW! A newsletter giving a detailed description of home improvement loan by email.