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Remodeling/Addition Loans

Remodeling your existing home?
Purchasing a home needing renovation?
Want to renovate a second home or investor property?
Want to remodel or improve your home but have little equity?

Home Renovation Mortgage

CLC offers two different types of renovation loans: the Home Renovation Mortgage and 2-Step Flex construction-to-permanent mortgage. A CLC Loan Consultant can help you determine which of these programs best meets your needs.

The home renovation mortgage is a cost effective and convenient way to combine a home purchase or refinance; plus, home renovation/improvements with 1 loan, 1 closing, 1 rate, 1 fee. Instead of financing the renovations with a second mortgage or home equity loan, you will receive the benefit of a lower interest rate of a first mortgage based on the total amount. Upon closing, your mortgage interest rate is locked and principal and interest payments begin.

The borrower may hire a builder or home improvement company to complete the renovations or improvements. Any type of permanent improvement to the home is allowed, including cosmetic repairs and landscaping, provided that the improvements are supported in the "as-improved appraised value".

Benefits:

• Renovation/improvement term up to 6 months.
• Borrower (owner) labor allowed up to 10% of total improvement cost.
• Renovate 1-4 unit primary homes, 1 unit second homes and 1 unit investment properties.

2-Step Flex Construction-to-Permanent Mortgage

2-Step Flex is a construction loan for financing major remodeling and/or renovations.This program is very flexible due to the ability to act as your own general contractor (no builder's license required) or you may choose to hire a licensed builder for all, or a portion of, your project. This loan is based off the new appraised value, as if the home is already completed. This allows the homeowner to begin a building or remodeling project, with little to no money down, in most cases.

Benefits:

• Owner-builder (no license required) or Licensed builder
• Interest only loan based on outstanding balance
• Homeowner hires sub-contractors of his/her choice
• Any 1st mortgage/liens rolled into new construction loan
• Unlimited Draws
• Loan is based off "new appraised value"

The first draw of this loan is to payoff any existing mortgages/liens on your home. CLC's sets up the first 12 months of this new mortgage to work as a line of credit so during your construction phase you may request draws to pay for your materials, supplies, builder, and sub-contractors. During this 12-month period, you are required to make interest only payments based on the total outstanding amount drawn from your construction loan. Once your project is completed, your construction loan is converted into your permanent mortgage and your principal and interest payments begin.