What You Need to Know Before Applying for a Renovation Mortgage
This conversation delves into the intricacies of renovation loans, covering essential topics such as the renovation loan process, working with contractors, budgeting and contingency reserves, permits and project timelines, the draw process, and best practices for homeowners. Jennifer Goldsby provides valuable insights and practical advice for navigating the complexities of renovation financing, ensuring a smoother experience for home buyers and homeowners financing their renovation projects.
Takeaways
• All programs discussed are typically for properties you intend to live in.
• Financing for second homes and investment properties can be challenging.
• Renovation loans generally require a longer closing timeline.
• Contractors play a crucial role in the renovation process.
• It’s important to budget for a contingency reserve during renovations.
• Permits must be pulled immediately after closing on the loan.
• Work must start within 30 days of closing and continue without long pauses.
• Understanding the draw process is vital for managing contractor payments.
• Homeowners should avoid concurrent projects during renovations.
• Choosing the right lender can significantly impact the renovation experience.
Chapters
00:00 Understanding Renovation Loans
03:06 Types of Renovation Loans and Their Requirements
06:08 The Importance of Diversifying Clientele
08:01 Understanding Renovation Loans
10:42 Benefits for Contractors
14:52 Navigating the Renovation Loan Process
18:58 Bid Requirements and Documentation
23:08 Understanding the Draw Process
26:57 Loan Processing and Timeline
29:49 Navigating the Renovation Loan Process
37:20 Understanding Budgeting and Contingency Reserves
42:14 Managing the Draw Process and Contractor Payments
49:09 Best Practices and Warnings for Homeowners
52:52 Final Thoughts on Renovation Loans
54:18 Compliance Disclosure
