Countrywide Home Loans, Inc. offers a mortgage for people who want to do major remodeling or renovation of a home they are purchasing or refinancing. The mortgage, called the One-Time Close Major Renovation Loan, can be used by qualified borrowers as a
Get Countrywide Home Loan information today!financial management tool to roll the cost of remodeling a new or existing home into a single loan transaction. Typically used when home improvement costs exceed $50,000, this mortgage tool requires a borrower to qualify and apply for financing only once, meaning one application, one set of loan documents and one loan settlement.
The One-Time Close Major Renovation Loan features five easy steps:
1. The home is appraised at an amount that reflects the value after completed improvements.
2. Existing liens, in the case of a refinance, are paid off and consolidated into one loan, along with renovation construction costs.
3. The customer or builder submits requests for funds, based on construction budget, up to completion of the renovations. In other words, home buyers or owners pay no out-of-pocket costs during construction.
4. During construction, the customer makes interest-only payments.
5. When construction is complete, the loan converts to the customer's mortgage of choice.