The possibilities are endless with a renovation loan from PrimeLending. We pride ourselves on being America’s Renovation Lender by helping you understand the process, answering your questions and finding the right renovation loan to match your goals.
We’re chatting with PrimeLending renovation loan expert Brad McMullen, VP, Renovation & Construction Lending, to help you learn more about renovation financing with PrimeLending.
What are the first few steps to take when deciding to renovate?
The first place to start when interested in renovating your home is to receive a detailed estimate for what repairs you’d like to have completed on your home.
What are the benefits of a renovation loan over other options to finance a home renovation?
The biggest benefit of getting a renovation loan is that you’re able to combine the cost of the home and renovation into one loan that closes once your renovation is complete and it is financed over 30 years. The loan is also based on the After Improved Value, meaning it encompasses the total value including improvements rather than the separate values of each.
How much can an individual borrow for a renovation?
Depending on the renovation program that is the right fit for your project, the amounts can be as high as the allowable loan limits with your state.
What can a borrower renovate? Are there any limitations?
Most renovation loans will allow both Required and/or Desired repairs and there are very few limitations on what can’t be renovated. At PrimeLending we offer loans for cosmetic improvements, updating older homes, improvements to make your home energy-efficient, adding a pool to your home and more.
How is the renovation loan process at PrimeLending better?
At PrimeLending, we offer 15 types of renovation programs for different borrower types. So, no matter what your renovation project, we have a renovation loan to fit your needs. We also have a specialized group of processors and draw analysts to assist throughout the entire process. We’re here from the start of your renovation journey until all repairs have been completed after closing. We’re with you every step of the way.
How long does it take to approve renovation financing? Has the process changed this year due to COVID-19?
We ask for 45-60 days to close a renovation loan, as extra time may be needed for an estimate from a contractor. Due to COVID-19, our VA and jumbo renovation loan programs have been suspended by the investors.
Can you tell us more about approved contractors and what the process of selecting an approved contractor looks like?
Our team doesn’t approve contractors, we register contractors and the process takes anywhere from 48-72 hours. We need a completed contractor packet which includes the following: license, insurance, W-9 and borrower/contract agreement.
What are some tips or best practices you recommend for a borrower looking to get a renovation loan?
Connect with your local PrimeLending loan officer to learn more about the best loan options for your renovation scenario. It’s also important to begin gathering estimates from contractors as soon as possible.
If you’re ready to get started on your home’s renovation, find a PrimeLending loan expert in your area today.