Home Renovation Loan

What makes the Home Renovation Loan Different?
In the past, even if your planned improvements would increase the value of your home, lenders looked at your home’s current value in determining that portion of your eligibility to refinance. If home improvements were in-progress, they would ideally be completed before the mortgage process could continue. With the Home Renovation Loan from Citywide Home Loans, you can borrow according to the projected value of your property (as determined by an appraisal).

Lending criteria has only been getting stricter in recent time, with higher equity requirements and lower loan amounts becoming the norm. However, with the Home Renovation Loan from Citywide Home Loans, no equity is required and you can even borrow MORE THAN the value of your home.

For example: If your home is valued at $200,000, under a normal conforming 30 year fixed loan, you could only qualify for $160,000 for the refinance (80% Total Loan To Value TLTV). If your current loan was $190,000, you would not be able to refinance to a lower rate due to not having enough equity, but with the Citywide Home Loans Home Renovation Loan, you could qualify for up to $225,000!

How is it Possible?
The Home Renovation Loan is based on an existing Federal Housing Administration (FHA) loan program. This loan program was created as an important tool for community revitalization and for expanding homeownership opportunities.

The Home Renovation Loan from Citywide Home Loans, allows homeowners to refinance into a low rate mortgage with little or NO EQUITY. This loan program is also used to purchase a home in need of repairs and get up to $35,000 above purchase price to use towards home improvement projects!

How it works (Contact us for home details on the process)

Appraisal & Loan Amount: You have the option to hire a contractor, or use our Home Renovation Loan certified contractors, or make the home improvements yourself. Upon receipt of the cost estimate form prepared by you, or a work write-up provided by a contractor, an appraisal will be completed. The home improvement portion of your loan will be calculated using this appraisal plus a 10% contingency reserve. This reserve is in place to cover any unexpected or additional expenses associated with your cost estimate or work write-up.
Rate Lock-in through closing: The next step is to secure your interest rate. From there, your loan will be submitted to our underwriting department for approval. At this time, any outstanding conditions will be addressed. We have worked with our certified Home Renovation contractors to streamline and minimize any improvement related conditions to ensure a quick closing. Upon approval from Underwriting, you will receive your final loan documents for signing.
Disbursements: Your loan will fund approximately 1 – 3 days after signing. At this time, 50% of your total home improvement financing will be disbursed to you (and your contractor, if applicable). This will allow you to get started on your improvements as quickly as possible. The remaining 50% will be disbursed within 30 days of completing the following:

All home improvements finished.
All receipts for home improvements provided.
Executed letter of completion supplied.
Title update to show clear title issued.
Proof of final inspection (if your improvements exceed $15,000) completed.

Call 877-475-2407 to speak to a Citywide Home Loans, Home Renovation Program expert or GET A QUOTE today!

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