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Build Up and Design Your Home - How To Get Financing and Living At Home During Renovation

How To Get Financing and Living At Home During Renovation

01/15/18 • 14 min

Build Up and Design Your Home

Either you want to purchase a home and want to renovate the home or you currently own the home and want to tear it down and build it anew.

If you own the own home a bank will loan you, in most cases, up to 80% of the value of your home. Your LTV or loan to value will depend on the current value of your home but no more than 80% of your home's current value.

A cheaper way to do it is to get a HELOCK (home equity line of credit) with is essentially a second mortgage on the home. You will only pay for the money that you're using.

There are construction loans that banks can offer but they will pay the builder directly and the contractor will have to sign an acquisition form at the bank.

The good news is you have options, as far as New York is concerned.

For More Information:
www.jbuildersny.com

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Either you want to purchase a home and want to renovate the home or you currently own the home and want to tear it down and build it anew.

If you own the own home a bank will loan you, in most cases, up to 80% of the value of your home. Your LTV or loan to value will depend on the current value of your home but no more than 80% of your home's current value.

A cheaper way to do it is to get a HELOCK (home equity line of credit) with is essentially a second mortgage on the home. You will only pay for the money that you're using.

There are construction loans that banks can offer but they will pay the builder directly and the contractor will have to sign an acquisition form at the bank.

The good news is you have options, as far as New York is concerned.

For More Information:
www.jbuildersny.com

Previous Episode

undefined - How To Stay Within Budget

How To Stay Within Budget

From downloading a template online to outline what you intend to spend on -- getting an exact amount of the raw materials is possible if you know what type of material you're looking to invest in when building and designing your home because you can get a kitchen counter for $10,000 or $2,000 depending on the materials.

Putting together a fantasy list prior to getting a quote is the best move to avoid surprise fees afterwards because you can always take items off to save money but doing it the other way around can become costly very quickly.

From over a decade of work only one person Josh has worked with has gone only $700 over budget and that was a patent attorney who was having his home built -- 

If you think your budget is $350,000, keeping in mind contractors supply labor and some materials but they may not provide windows or tiles but often they will only include labor and installation and give you a slight credit for the materials.

So when putting together a budget keep in mind materials you'll need in addition to labor and factor in overages such as last minute additions to a work order and each professional you've hired to get the project completed from Architect to Space Planner, Interior Designer etc.

For More Info Visit:
www.jbuildersny.com

Next Episode

undefined - Insurance Policies and People Doing Two Jobs

Insurance Policies and People Doing Two Jobs

During the construction of your home, homeowners insurance will cover most of your risk but you are asked to grab a builders risk policy due to the possibility that a contractor breaks something or they open the roof and a leak sets in -- the good news is you will only pay for the length of the time you're using it. As soon as you close the extra policy you will no longer be charged.

A contractor carries a general liability insurance and workmans comp insurance but a contractor will give you a certificate of additionally insured but a homeowner should get their own insurance during the length of the construction project.

In order for a contractor to pull a permit the building department needs to have all of a contractors paperwork in order otherwise a contractor cannot pull a permit but there's no way for a contractor to know if a homeowner has done their own due diligence.

A bonus item Josh shares are the details regarding a certificate of occupancy that must be processed before you can live in your home regardless of how many other items you have done properly.

To Find Out More Visit:
www.jbuildersny.com

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