One Time Close Home Remodel Program

Numerous requests have been received regarding the need of homebuyers and purchasers to have a better way to make improvements on their existing home or the home they are purchasing. In the past, in order for homeowners or purchasers to do the improvements they desire, they have only had a few alternatives. These have been as follows: 1) To do a cash out refinance based on the current value of the home. This does not allow the borrower to take advantage of any additional equity these improvements will produce. 2) To get a loan approval based on the value of the home after the improvements are made. This type of loan does not allow the closing to occur until the improvements are completed. This places the burden of funding the improvements on the homeowner, who will then be reimbursed after improvements are completed and the loan closes. Many homeowners do not have the cash to initially fund the improvements! 3) To take out an equity line, or take a 125% LTV loan of current value, with high interest rates in order to make the improvements. Both of these options require the borrower to pay above market interest rates. Finally, Garrett Mortgage, Inc., has answered the call for a new and different way for borrowers to make their home the home of their dreams. GMI has developed a “One Time Closing Home Improvement Loan.” This loan program provides the borrower an opportunity to refinance their current mortgage or purchase a new home, and fund the improvements made to their property as they progress. The loan is then modified at the completion of the improvements to one of GMI’s permanent loan products at current market interest rates.

Purchase Home Remodel

This program is for borrowers who are looking to purchase a home and make immediate renovations/additions. This program provides for a single settlement in which the purchase of the home is funded and the balance of the loan proceeds are held by GMI and disbursed in draws as the improvements to the property are completed. The "LTV" will be determined by using the lesser of the sales price of the home + documented costs of improvements + 10% contingency reserve OR the "upon completion" appraised value of the property. Once the improvements are completed, a modification agreement will be exercised and the borrowers begin making their PITI payments based on their permanent mortgage financing terms.

Refinance Home Remodel

This program is for borrowers who wish to make renovations/additions to their current home. This loan is a combination refinance and home improvement. At the initial closing any and all current liens are paid off and the balance of the loan proceeds are held by GMI and disbursed in draws as the improvements to the property are completed. The "LTV" is determined by using the "upon completion" appraised value of the property. Once the improvements are completed, a modification agreement will be exercised and the borrowers begin making their PITI payments based on their permanent mortgage financing terms.

The money to remodel, finance and improve your dreams into reality.
One Loan. One Closing!