Arthur Haan
Email: Arthur.g.Haan@Chase.com


Financing for remodeling projects is alive and well despite the headlines regarding the current ‘credit crises’. Lending has changed its look recently but mortgage financing is still widely available for the majority of projects.
One of the more popular remodeling financing vehicles is the Construction / Permanent mortgage. This one transaction allows you finance both the remodeling project and your existing mortgages into ONE loan. The magic in this arrangement is that it allows you to finance up to 95% of the AS-IMPROVED value of the property. Additionally by combining both the construction loan and mortgage into one transaction, you save fees and redundancies in paperwork. This is one of the most cost-effective methods to finance projects of $50,000 or greater.
Home Equity Financing is still available but is now a shadow of itself. As home values have fallen nationally, lenders have reduced the amount of money they are willing to lend per home. Many lenders have concluded that they are unwilling to lend more than 85% of a home’s current value. This is a stark contrast to the 95 – 100% of value that was prevalent a year ago. Although still viable, Home Equity products are best suited to smaller projects of less than $50,000.
As a valued partner of Steve Gray Renovations, we are prepared to supply you with objective financing advice to meet your goals. The combination of Chase’s competitive products, pricing and the Haan Group’s 17 years of experience can make your project happen.
Tips

- Arrange financing BEFORE the project starts. Eliminate the unknowns such and appraisal and approvals to reduce anxiety. Additionally, some lenders and title agents will be reluctant to lend or insure a partially-completed project if you start financing AFTER the project has begun.
- Borrow more than you think you will need. It's better to have available funds that you don't use instead of thinking of things you want to add DURING the project and no money.

- Choose a lender who SPECIALIZES in Remodeling Financing. Many lenders are inexperienced in lending based upon the AS-COMPLETED value of a property.