Q: What type of remodeling is allowed?

A: Mostly any remodeling that add value to your home is allowed. It can be as simple as painting the house all the way to building a guest house.

Q: Wouldn’t it be easier to just get a cash-out refinance and do whatever I want? 

A: A cash-out refinance can be a simpler loan for you, but cash-out refinance are based only on your as-is value and the amount you can borrow is limited to only 85% of your home’s value. A renovation loan can go up to 96.5% of the future value of your home, after the renovations are completed.

Q: What expenses will I be responsible for?

A: 100% of the construction cost are covered and paid for by the lender. The homeowner is usually responsible for the upfront appraisal cost and sometimes responsible for the upfront architect costs (if plans are being drown), but can also be reimbursed from the loan amount.

Q: I have heard that renovation loans are difficult to get and take a long time to get approved, how true is this?

A: It is true that renovation loans require some additional steps, but our experienced team has the knowledge and experience to finish your loan in as little as 30 days. The more clear you are on what you want done, the more easier and faster the process becomes. The process can be rewarding and exciting. We also use many new technological tools that make the loan process smoother.

Q: I do not have much equity in my house, can I still get a loan?

A: Absolutely! No equity is needed to get you approved, because the loan is based on the future value or after repair value.