address the need of homeowners to finance improvements on their home. Prior to
the availability of remodeling loans, homeowners only had a few alternatives. These were 1) Pay for improvements in
cash. 2) Do a cash-out refinance based on the current value
of the home. 3) Take out an equity line or loans, again, based
on the current value of the home. This
still places the burden of funding the improvements on the homeowner. Remodeling
loans solve this problem. Email with questions on
As a mortgage broker
specializing in remodeling loans, I work for my client, taking the time to
understand your situation and placing your remodeling loans with the lender
whose remodeling loans match your needs. I currently have access to 22 lenders
offering remodeling loans.
Remodeling loans are available as a fixed rate or adjustable. Construction and remodeling loans are a specialized part of mortgage banking and most brokers do not
have the experience to guide you through this complex process. At the most fundamental level,
construction lenders offer two types of remodeling loans characterized by how they base
interest rate on the loans during the construction phase. I refer to these approaches
as “One Step” and “Two Step”
Remodeling loans allow you an opportunity to refinance your current mortgage or purchase
a new home and fund the improvements. Remodeling loans are then modified
at the completion of the improvements to a permanent loan
Remodeling loans are a variation of the "One Time
Close" remodeling loans product. The
of remodeling loans 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 project.
Single Rate. "One Step" program protects you
against increasing rates and extended lock fees. Interest only fixed rate
during construction and modifies into a permanent loan after construction.
Great flexibility and low rates on ARMs.
Remodeling Loans Prime Rate
Based. "Two Step"
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.
I have included a list of the documentation needed to process Remodeling
Loans , a section on Frequently Asked
Questions, a section on remodeling loans draw
schedules, and information on remodeling loan fees.
They may require the use of a contractor. I have a section on
contractor requirements and contracts.
Please feel free to
any specific questions.
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detailed description of them available by
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Certified Mortgage Planning
Specialist, I offer an analysis of
your situation today can make suggestions on how small changes in how
your debt is structured today can have a life changing effect in the years
to come. Read more
about this free, no obligation service.