Construction Loan to Refinance - Hard Money or Conventional Bank?

Question

Hi, I was hoping to get some advice. My wife and I are planning on doing a big home renovation to our existing home in NY. We are also expecting a baby this summer and would like to get to work ASAP.  Ideally we could get a loan based on the After Renovation Value so we can take the large sum of 250k for the renovation. I know there are some conventional banks that do these types of loans and roll them into a refinanced mortgage once the construction is complete.

Are there any hard money lenders that would be available to do something similar to front the construction loan? Like I said the importance of time is a major factor here, and the sooner we can start the better. We have our contractor and construction plans all lined up.

Thank you!

John

Andrew Goldman · Answer

@Andrew Goldman ^^^^ the biggest thing is you must be self employed though

Andrew Goldman · Answer

@John Connolly I work with a referral partner that helps my clients obtain very flexible short term funding on DIY projects. Obviously with short term lending the trade off is a higher interest rate. But thats how we help each other since we immediately try to roll those DIY project loans into a 30 yr fixed QM/Non QM loan.

Jonathan Taylor · Answer

@John Connolly if this is your primary, a HELOC may be a better option since you can refi out once all renos are done to pay off the HELOC. This would depend if the ARV value and the refinance rate (rates are rising) would be worth it. As for HMLs who lend on primaries, that would be a question for a local lender. My HMLs don't lend seconds on primaries for renovations.

Dave Skow · Answer

@John Connolly

Many lenders  have   " rehab" /  " remodel"    programs that  might be  worth  checking out  before  reverting to the hard money route