Construction Loans CA

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Remodeling/Rehab Loan

There are a number of different loan programs available for remodeling an existing home or purchasing and rehabbing a new one.

Remodeling an Existing Home

If you already own your home and you want to remodel it, then you can finance the remodeling costs with a home equity line of credit, a second mortgage or a new first mortgage. The option that you select depends upon the amount of equity that you have in your home and the cost of the remodeling. If you do not have any equity in the home, then a home equity line of credit or a second mortgage are great choices because the loan amount will be based upon the value of your home after the improvements are completed. For example, if your home is currently valued at $450,000 and you are doing an extensive remodel that will increase the value to $575,000, then the loan amount will be based upon $575,000.

Features of our second mortgage remodeling loans are as follows:

• loan amount up to $2,500,000
• financing up to 100% of remodeling costs
• no application fee
• no up-front bank fees
• loan terms up to 30 years
• fixed or adjustable rate programs

If you have equity in your home but the interest rate on your existing mortgage is lower than current rates, then you may want to keep it and get a second mortgage or home equity line of credit. Although the rates are higher for these types of loans, the closing costs are much lower. Also, the blended rate of your existing mortgage and a second mortgage or home equity line of credit may be lower than refinancing your existing mortgage to finance your remodeling costs. Give us a call toll free at 1-800-438-2704 and we will be happy to price both scenarios for you so that you can select the option that best fits your needs.

Purchasing and Rehabbing a New Home

Rehab loans are great if you find a home that you want to buy and remodel or even "tear down". "Rehab loans" are available for owner occupied single family residences and 1-4 unit properties. These are great loans because they give you the money to buy the home and to fix-it up. The loan amount will be based upon the future value of the home after repairs are completed.You will need to qualify for the loan and to provide a scope of work and detailed cost estimate for the repair work that will be performed. Loan amounts are available to finance up to 97% of the purchase and repair costs.

Features of our rehab loans are:

• loan amount up to $5,000,000
• down payments as low as 3%
• loan includes rehab costs
• no application fee
• no up-front bank fees
• loan terms up to 30 years
• fixed or adjustable rate programs
• Types of Repairs/Improvements

Remodeling/rehab loans are available for the following types of repairs and improvements:

• "tear downs"
• structural alterations
• room additions
• adding a second story
• garage conversions
• new flooring, painting, fixtures, appliances, plumbing, electrical
• swimming pool and/or spa
• modernizing kitchens and bathrooms
• installation/repair of well or septic system
• major landscape work and site improvements
  

If you have any questions or you are interested in getting prequalified for a remodeling/rehab loan, then give us a call toll free at 1-800-438-2704.