Following up on an earlier blog post regarding the ultimate green home....an older home. If you have watched Hidden Potential on HGTV, you may have wondered how these folks financed those renovations in a home they did not already own.
The tool they use is a construction/renovation loan. The purchase closing, construction loan and permanent mortgage are all done at one closing with most lenders. Jennifer Foster, at Suntrust, tells me, "The buyer must have a 5% down payment on the total amount (purchase price plus costs estimate). Plans and costs breakdownneed to be provided underwriting before we go to closing. The appraisal will be a "subject to" value so I'll need to share the plans with the appraiser as well."
