The local financial credit union is now offering loans for home renovations |
How they work:
A home renovation loan is a new type of loan that combines the best elements of a home loan with a home loan. It is the only home renovation loan that does not require homeowner refinancing, and it is the only home renovation loan that does not require funds to be paid out to the contractor through a messy inspection and draw schedule process. Like all home renovation loans, these loans are based on post-renovation value, so homeowners can borrow the most money at the lowest possible interest rate without having to refinance.
Home renovation loans are suitable for existing homeowners or homeowners buying and renovating a new home.
For existing homeowners who have a super low interest rate on their first mortgage, the home renovation loan is an ideal choice as they can absorb the value after the renovation without having to refinance again.
For homeowners looking to buy a home in need of some renovation love, a home renovation loan allows home buyers to purchase the property with a traditional mortgage and then, once the renovation is complete, use a home renovation loan to fund the renovation work. This is a lot easier than trying to get a home renovation loan for the buying process.
• DOES NOT require homeowners to refinance their first mortgage, which means homeowners can maintain their low interest rates and avoid restarting the clock on their mortgage. Same Low Home Equity Interest Rates – For terms of 10 to 20 years, interest rates are usually the same as a traditional home equity loan or line of credit.
• Lower fees – since the loan does not require you to refinance your entire mortgage, you will pay fewer closing costs because the loan is based on a smaller basis.
• Can borrow $ 20,000 to $ 500,000
• It is the only home renovation loan that does not require homeowner refinancing, and it is the only home renovation loan that does not require funds to be paid out to the contractor through a messy inspection and draw schedule process.
• Since home equity loans typically have a term of 20 years, the monthly installments for these loans are often slightly higher than the payments for other home equity loans with a term of over 30 years.
There Financial began offering a new residential home renovation loan program in 2021.
“We have found this program to be very beneficial for homeowners who do not currently have the equity in their home to fund their renovation project. It enables us to fulfill our mission of opening doors to our members by providing high quality financial services, ”said Marc Tatarcuk, Real Estate Lending Manager at Dort Financial Credit Union.
There Financial also offers an FHA Title 1 Home Improvement Loan, a Fixed Rate Home Equity Loan, and a Home Equity Line of Credit Loan (HELOC). Whatever the need for home improvement finance, the mortgage professionals at the credit union will help the borrower determine the best home improvement loan that will suit their individual needs.
The Dort Financial Home Equity Support Specialist can be reached at 888-837-4317.