Finance Remodeling Your Home

A remodel is a significant investment, and how you choose to pay for it is an important part of the planning process. Whether you plan to pay in cash, use your home’s equity, or finance all or a portion of your project, there are several options available. The right approach depends on your project, your timeline, and what makes the most sense for your financial goals.

Financing can also provide flexibility. Some homeowners choose to finance their remodel even when they have funds available, allowing them to preserve savings, spread project costs over time, or move forward with a larger scope without tying up as much cash. Below, we’ll walk through some of the most common ways to finance a home remodel so you can better understand your options and decide what works best for you.

What are the options when Finance Remodeling Your Home?

You aren’t stuck with a single option when you finance your home remodel. Below is a list of the top four finance options from our remodeling finance expert, Tom Yoswa.

HELOC

• Maximum combined loan-to-value (CLTV) of 80%
• Interest-only payments during the draw period
• 10-year draw period, followed by a 20-year repayment period
• Option to lock the disbursed portion of the HELOC into a fixed interest rate
• No closing costs*
• Appraised value is based on the home’s current value, not the projected value after renovations
• Available for primary residences only

*If the HELOC is paid off and closed within 30 months, an early closure fee of 1% of the original loan amount applies, up to a maximum of $500.

HEIL

• Maximum combined loan-to-value (CLTV) of 80%
• Fully amortized payments with terms from 180 to 360 months for loans over $30,000
• No closing costs*
• Appraised value is based on the home’s current value, not the projected value after renovations
• Available for primary residences and second or vacation homes

*If the loan is paid off and closed within 30 months, an early closure fee of 1% of the original loan amount applies, up to a maximum of $500.

CONSTRUCTION TO PERM REMODEL

• Maximum loan-to-value (LTV) of 80%
• 30-year fixed, 10/1 ARM, and 7/1 ARM options available
• Minimum renovation cost of $100,000, with potential exceptions down to $75,000 for qualified borrowers
• One-time closing with interest-only payments for the first 12 months
• Standard refinance/construction-to-permanent closing costs apply
• For properties owned more than 12 months, the completed appraised value may be used for valuation
• For properties purchased within the last 12 months, LTV is based on the lower of acquisition plus documented construction costs or the completed appraised value
• Available for primary residences and second or vacation homes

Make Your Dream Home a Reality By Remodeling

FBC Remodel is excited to partner with you on your remodel project. To learn more about our financing options and partners, please reach out to your Senior Designer.

Schedule your complimentary design consultation today