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Remodeling Loans

Remodeling loans 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 remodeling loans.

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.

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 product.

Remodeling loans are a variation of the "One Time Close" remodeling loans product. The major advantage 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. 

  • Remodeling Loans 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" 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. 

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 email with any specific questions.

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As a 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.