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. Our renovation financing programs like the FHA 203k
renovation loan and Fannie Mae Homestyle are unique in that you can borrow based on the completed value of your home after the proposed renovations are complete.
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.
We advance funds to the contractor(s) as stages of the project
are completed until the loan is fully drawn and construction