Can you refinance while you’re remodeling?

[harrycalahan]

Im about 2/3’s of the way done with the remodel. Pay as you go plan. I dont have to refi but Id really like to if possible. Would they cut my value since parts of the house are not finished? Or do they even do an on site appraisal for a refi? Thanks for any info.

 

[GAGunguy]

I've never had them come into the house for a refi, sometimes they drive by, but never been asked for an inspection. They mostly go on comps from your neighborhood.

I bought my first house and gutted it, complete down the stud remodel, about 3 months into the reno, the mortgage company wanted to know if I was living in it, so they had looked in the window.

 

[MegaFan]

For "most" financing and/or refinancing options, one of the standard questions is whether or not any remodeling work is in progress. The banks are always concerned that there could be unpaid costs, leading to a separate lien/attachment that could "cloud" their title. At loan closing, again, same question is typically asked to ensure all debts are paid.

 

[Grady263]

For "most" financing and/or refinancing options, one of the standard questions is whether or not any remodeling work is in progress. The banks are always concerned that there could be unpaid costs, leading to a separate lien/attachment that could "cloud" their title. At loan closing, again, same question is typically asked to ensure all debts are paid.

This! I am about a month out from getting my construction loan for a new build and I told my banker that in the meantime, I was going to go ahead with the clearing and grading and pay out of pocket. He told me not to do anything because banks don't like to come in after any work has been performed, in case you owe the contractor money and end up getting a lien slapped on you.

He said get the loan closed first, then use the banks money when I needed it.

 

[Redneck1919]

When I built my house, had a construction loan. Later when I wanted to convert to a regular loan I had to get everybody that had done any work to sign a release saying I did not owe them anything.

 

[Chatsworth]

I couldn't even get homeowners insurance during a remodel.
Bought a house and paid cash and started to remodel the kitchen, My State Farm agent came out the next week and walked thru and refused to insure it..

 

[JHunter14]

When I built my house, had a construction loan. Later when I wanted to convert to a regular loan I had to get everybody that had done any work to sign a release saying I did not owe them anything.

I've heard nightmares about construction loans. Makes building a retirement home less appealing... granted, I'm 25 +/- years from that.

 

[THREEJAYS]

Interesting question

 

[Realtor]

This! I am about a month out from getting my construction loan for a new build and I told my banker that in the meantime, I was going to go ahead with the clearing and grading and pay out of pocket. He told me not to do anything because banks don't like to come in after any work has been performed, in case you owe the contractor money and end up getting a lien slapped on you.

He said get the loan closed first, then use the banks money when I needed it.

We ignored this request on your recent loan and went ahead and graded and cleared to get a jump on it

 

[Ken Ford]

I know that house flippers use a “as improved value” mortgage or financing. I don’t know much about it though.