Home Renovation Financing

Home Renovation Financing Loans are my specialty. Email with questions on home renovation financing Homeowners need a better way to finance a home renovation. In the past, homeowners wishing to finance a home renovation had few alternatives. These were 1) Pay for the home renovation in cash. 2) Do a cash-out refinance based on the value of the home before renovation. 3) Get a home equity line based on the current value of the home. 4) Get loan approval based on the value of the property after the home renovation. This places the burden of financing the home renovation on the homeowner who will not be reimbursed until after the loan closes.

I am a home renovation financing mortgage broker and represent 22 of the largest home renovation financing and construction lenders in the market. As a broker, I work for my client and not the lender, taking time to understand your situation and placing home renovation financing with the lender whose home renovation financing match your needs. I give you unbiased advice and support throughout the process. Home renovation financing is a specialized part of mortgage banking and most brokers do not have the experience to guide you through this complex process. This is some basic information but please call to discuss your project. At the fundamental level, lenders offer two types of home renovation financing loans characterized by how they base interest rates during the construction phase. I describe these as “One Step” and “Two Step”

Home renovation financing is a variation of the construction/perm home renovation loans product. An advantage of home renovation financing is that we lend against the finished or "as completed" value of the property.

Home renovation financing loans have two uses:

If purchasing a home that would be perfect if....... The first disbursement acquires the property and subsequent disbursements occur at predetermined points in the construction process. After construction, it modifies into the permanent product saving the cost of a second closing.

If remodeling your property because it would be perfect if.... The first disbursement refinances any liens against it and advances the contractor any up front costs. Subsequent disbursements and modification follow the above process.

There are several programs available:

One Time Close Home Renovation Financing Single Rate. "One Step" program protects you against increasing rates and extended lock fees. Interest only during construction and modifies into a permanent financing after construction.
One Time Close Home Renovation Financing Prime Rate Based. "Two Step" program allows 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.

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 contract with a licensed contractor. I have a section on contractor requirements and contracts.

A newsletter giving a detailed description of home renovation financing by email.

We also offer Second Trust or Home Equity Lines of Credit up to 100% of the Current Value.

For the documentation needed for your Home R enovation Financing , a section on Frequently Asked Questions, a section on renovation financing draw schedules, and information on home renovation financing fees