What makes a Renovation Loan different?
Most mortgage programs only provide permanent financing
that allows you to borrow based on the purchase price or current
value of the property. Renovation financing is unique in that
in most cases we are lending you money based on the completed
value of your home allowing you to borrow more taking into
consideration value your construction project will add to
your home.
You can borrow more money because you are not only tapping
into the equity you may currently have in your home, you can
also gain access to the increased equity the house will have
when finished. This is most helpful when you are planning
larger scale improvements like additions that add square footage
to your home or adding a second story to a ranch style home.
Typically this is done with a single loan and a single closing.
The lender advances funds to the contractor(s) as stages of
the project are completed until the loan is fully drawn and
construction is finished.
