Refinance Renovation loans from Residential Mortgage
Are you ready to renovate your outdated kitchen or master bath and increase your home’s value? What about increase the energy efficiency of your home to save you money? All of that is possible with a Refinance Renovation loan from Residential Mortgage.
Below you’ll find some quick facts about the Refinance Renovation loan and its requirements.
- Available to all Alaska residents.
- Properties eligible include: owner-occupied single-family residences, duplexes, triplexes, fourplexes, condominium units and Type I manufactured as well as rural non-owner-occupied duplexes, triplexes and fourplexes.
- Written estimates must be supported by a bid or contract signed by a licensed contractor. Borrowers doing the work themselves must provide evidence of their qualifications to complete the project.
- Renovations must comply with state laws regarding contractor licensing and minimum construction standards.
- Both an “as-is” and “as-complete” appraisal is required. Appraisals must clearly discuss the existing property, renovations proposed and include a discussion of materials used. It must also include the estimated market value of the home after the renovations are completed.
- 50% of the total loan amount, or $75,000, whichever is LESS will be held in escrow. In addition, a 10% contingency is required for cost overruns. Unused escrow funds are applied to the principal. The term of the escrow may not exceed 180 days.
- Additions are subject to additional requirements.
- A final inspection is required.
For more information, or to apply for a loan, contact us today.