Have you made the decision to stay in your current home but need some extra room or updates? Have you found the perfect fixer upper to buy? If you have a remodel project, which significantly increases the property value of a home, then a remodel loan is what you need.
- Add Value to Your Existing Home – Use the after-completion value for loan qualification purposes.
- One-time close – Pay off your existing mortgages and combine into one loan with construction costs.
- Low Down Payment – Depending on the equity position after improvements and length of residency.
- Interest Only Payments During Construction
A remodel loan is essentially a construction loan, and comes with all of the same benefits. The main benefit of a remodel loan vs. a home equity line of credit is the ability to use the after value of the property for loan qualification purposes.
Remodel loans of this nature require the expertise of a qualified construction loan officer to complete an analysis of your proposed project to ensure the improvements won’t exceed the value of your renovated home.