Remodeling loans for Residential Properties
Post on: 16 Март, 2015 No Comment
Residential Remodeling Loans
For Existing Residence or Purchase
Powerful Programs fund the entire project
with no payments during construction
Loan amounts up to $3,000,000
Fully Documented and Stated Income Programs
Major Remodeling Loans
When a Construction Loan is used to purchase an existing property.
I f you are planning on buying an existing home with the intention of conducting a major remodel then a construction loan is the only effective way of doing that. A construction loan will not only provide enough loan to purchase but also enough to money to make the payments during construction and all the work to be done.
T he reason for that is the fact that a construction loan is based on the future value of the property, rather than the purchase price. Loan to cost limitations will apply which are outlined in the construction loans page.
L oan to cost ratios can be as high as 95% where the cost is defined as all the costs associated with:
N ote that unlike a purchase money mortgage loan a construction loan closing expenses are considered as a cost and are inclusive of the loan amount calculation.
When Remodeling an existing home.
T he same loan can be used to completely remodel and or add on to an existing home, when the present equity is not enough to complete the project using a home equity line of credit.
A gain the loan to value will be based on the future value of the property. However if you have owned the property for over a year then the loan to cost can be as high as 100%.
How Does It Work?
Additions to existing structure.
New roof.
Interior and exterior walls.
Floor coverings
Landscaping.
New Kitchen and bathrooms.
E ven luxury items such as, pool, spa and tennis court are allowed. Basically everything can change down to the foundation.
Loan Amounts And Limits
L oan Limits vary for this program depending on the type of program you choose. Basically the same loan amounts describe in the construction loans page apply.
Questions? Call us Toll Free or Send an Email. with any questions or concerns that you may have. Visit Our State Specific Contact Page. where you can find our phone numbers to call us, contact us by email or complete our short, secure application form.
Land Loans
Though only available for owner occupied rehabilitation/remodeling projects, these full documentation high LTV loans have gained popularity, thanks to their new higher loan limits.
