Renovation Loan and Rehab Loan Programs
Looking to renovate your new or existing home or do you just need to deal with repairs that an appraiser is requiring to be completed? The HOUSE Team offers several different renovation and escrow holdback mortgage options to help rehab and renovate their Arizona dream home.
Renovation loans can help with:
Building or repairing a pool
Remodeling a bathroom
Cleaning up after weather related damage
Fixing something an appraiser says must be fixed in order to close
Basic Renovation Requirements
Each Renovation Loan has it’s own unique guidelines. However, below are some general concepts and rules that apply to all Renovation loans.
Contractor Rules & Regs
Below are a few basic regulations associated with the contractors that will be performing the Renovation work. Contractor rules & regs may differ from loan to loan and there may be more than what is listed below.
1. Contract cannot be the buyer, buyer’s family or friend
2. Contractor must meet PrimeLending minimum contractor regulations
Renovation Funds Rules & Regs
There are 4 general rules listed below related to how the funds for a Renovation and Escrow Holdback loan are managed. Reno fund rules & regs may differ from loan to loan and there may be more than what is listed below.
1. Funds for renovation are held by PrimeLending
2. Funds are distributed to contractor at specific points in process
3. A contingency fund equal to 10% of total bid is to be held back to cover overages
4. Excess funds are applied to balance of loan at the end of the rehab period
Other Renovation Resources
Team Phone: 602.435.2149
Team Email: Team@JeremyHouse.com
By Jeremy House