Remodel construction loans are used if you are planning on a major remodel and addition of your current home or buying an existing home with the intention of completing a major remodel and addition.

A major remodel loan works very similarly to a new construction loan; plans and a complete construction budget are required to determine the cost and loan amount. A plan and spec appraisal of the completed or future value of the remodel home will be used. The remodel construction loan will require the current mortgage to be replaced with the remodel construction loan.

Speak with a Construction Loan Specialists now: (888) 590-7466

Remodel construction loans require that the following costs be included in the new loan:

1. Existing property house payoff (loan amount).
2. Construction soft costs, such as architectural plans, permit fees etc.
3. Construction hard costs, including all the building materials and labor.
4. Remodel loan-closing cost, such as loan fees, title fees, escrow, taxes, etc.
5. Construction Interest reserve, an account that will make the payments on the remodel construction loan during construction. This facilitates "no-out-of-pocket" expenses.
6. Construction contingency reserve, a reserve account that will buffer against unexpected cost overruns.

   The remodel construction loan to cost(LTC) ratios can be as high as 90%, which means that 10% of the cost must be in the form of equity in the home or as cash at loan closing if you are purchasing the property. The loan to value(LTV) will be based on the future value of the property. However if you have owned the property for over a year then the (LTV) can be as high as 90%.

   How does a major remodel construction loan work?

   All new construction, demolition, repair, and improvement expenses can be included in this remodeling loan:

   • Additions to existing structure.
   • Major improvements, kitchens and baths, siding, windows, doors, floors, etc.
   • Driveways, garages, decks, patios, and landscaping.
   • Pools, spas, tennis courts, etc.

   Basically, everything can be included in the remodel construction loan—down to the foundation—as long as the loan-to-value and cash requirements are met. If you own your home for over a year, there is no cash requirement. The only requirement is Loan-to-Value.

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   REMODEL CONSTRUCTION LOANS Apply now!

   
   620 minimum credit score
   Fully Documented Loan and Stated Income/Verified Assets Approvals

   LOAN AMOUNTS	LOAN TO VALUE	CASH	DECISION CREDIT SCORE
   $400,000	95%	5%	620
   $500,000	95%	10%	620
   $650,000	90%	10%	700
   $650,000	85%	10%	680
   $650,000	80%	10%	620
   $750,000	90%	15%	700
   $750,000	80%	15%	620
   $1,000,000	80%	15%	680
   $1,000,000	75%	15%	660
   $1,000,000	70%	15%	620
   $1,500,000	75%	20%	680
   $1,500,000	65%	20%	620
   $2,000,000	70%	20%	680
   $2,000,000	60%	20%	620
   $3,000,000	65%	20%	680

   Remodel Construction Loans can be used to:
   • Purchase and remodel an existing home.
   • Complete construction on work in progress on current home.

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   Charter Funding Construction Loans
   5825 Avenida Encinas, Suite 101
   Carlsbad, CA 92008
   (888) 590-7466 office (760) 269-3123 fax
   www.cfconstructionloans.com