These loans provide the funds to acquire the property PLUS the funds to repair it. The loans are generally based on the after-improved value of a property. There are a wide range of these types of loans, which is why we ask those interested in them to provide a bit more information about themselves and/or their project. This way we can provide them with information and solutions that actually fit their needs. In general, it is possible to fix nearly anything that is wrong with a property, whether it is an old house or a new house.
You can add new square-footage, and/or fix virtually any structural, mechanical, or cosmetic problem.
Anyone. These loans are for real estate investors, or for owner-occupants that are looking for a creative way to put a roof over their own heads. They are also for anyone that already owns a home and would like to renovate it.
This is why we exist! Most lenders won't finance a home unless it is in good, "habitable" condition. With renovation financing, you can finance property that is completely unbelievable – if the roof is caving in, the plumbing doesn't work, or it was partially burned down, renovation financing is a likely solution. You can add new square-footage, and virtually any structural, mechanical, or cosmetic problem can be fixed with renovation financing.
This is not a problem. These loans are set up and administered in ways that make it possible for anyone to renovate a property, and to be confident that the right work is being done, with good workmanship, for the right price, in a timely fashion. Anyone can do this whether they own a hammer or not. If you'd like to build more confidence, let us help you do it right. And in the meantime, don't hesitate to check out our education links.
This can only be decided on a case-by-case basis, but it is often possible to do this.
In a few cases, this is possible. Good credit is often an important factor in making this possible.
In most cases, they are not. Most renovation loans carry conventional-type interest rates and origination fees. However, there are cases in which a particular borrower or project is well suited to a “hard money” loan. When this is the case, we help people with "hard money" solutions.
There are different options for different levels of credit scores. Most people will want to be in the range of 620 credit scores and above. However, solutions for credit scores as low as 550 are available.
Absolutely not.
In the vast majority of cases, there are not.
In most cases, borrowers are paying ordinary 1% origination fees, just like any ordinary mortgage. In some cases, the fees are higher.
There is a wide range of loan-to-value ratios possible with these loans. Owner occupants can sometimes go up to 100%, while investors can sometimes go as high as 80%.
They vary widely. In a few cases, 100% financing is possible. In most cases though, owner occupants usually need a minimum of at least 3-5%, while most investors need a minimum of 10% down. However, it is often possible to leverage other properties owned and their equity to come up with a down payment. Thus, even when a down payment is required, it doesn't necessarily have to be an out-of-pocket expense for the borrower.
Find out on our About Us page.
