Renovation & Construction

Let Our Loan Professionals Devise the Optimal Loan Package for You

Whether you are thinking about remodeling your current home, buying a new home with immediate renovation needs, or building a custom home from the ground up, First Home Mortgage can help with a construction or renovation loan that meets your exact needs. Our experienced and resourceful lending pros understand financing from the ground up!

Types of Repairs and Remodels Include:

icon Room Addition
icon Room Addition

Although home value may increase or decrease short term, if you decide to stay in your home long term, it could gradually increase in value. This could provide you with a significant return.

icon Garages & Driveways
icon Garages & Driveways

Although home value may increase or decrease short term, if you decide to stay in your home long term, it could gradually increase in value. This could provide you with a significant return.

icon Roofs & Gutters
icon Roofs & Gutters

Although home value may increase or decrease short term, if you decide to stay in your home long term, it could gradually increase in value. This could provide you with a significant return.

icon Plumbing & Electrical
icon Plumbing & Electrical

Although home value may increase or decrease short term, if you decide to stay in your home long term, it could gradually increase in value. This could provide you with a significant return.

icon Decks, Patios, Porches
icon Decks, Patios, Porches

Although home value may increase or decrease short term, if you decide to stay in your home long term, it could gradually increase in value. This could provide you with a significant return.

icon Basement Finishing
icon Basement Finishing

Although home value may increase or decrease short term, if you decide to stay in your home long term, it could gradually increase in value. This could provide you with a significant return.

icon Doors & Windows
icon Doors & Windows

Although home value may increase or decrease short term, if you decide to stay in your home long term, it could gradually increase in value. This could provide you with a significant return.

icon Landscape & Fencing
icon Landscape & Fencing

Although home value may increase or decrease short term, if you decide to stay in your home long term, it could gradually increase in value. This could provide you with a significant return.

For a full list of eligible improvements and considerations, contact a First Home Mortgage Loan Officer.

Questions to Consider as a Renovator

Is it the right time to renovate?

It is best to understand what your actual needs are to make it the most effective for the cost and time. For example, are your looking to expand your kitchen to allow for more cooking and storage? Then the time may be right for you to start a renovation project on your home.

Can you afford a renovation?

Depending on where you are taking the money from can help you understand how much you can afford. Are you taking it from your home equity or are you using savings? Either way you should be clear about your budget ahead of your renovation.

If you are looking to build your home, are you in the right financial situation?

You should check your budget to make sure you have an idea of what you can afford. When it comes to building verse buying, the financial process is a bit different. Keep in mind, there are a few extra steps you will need to do first.

Do you know your wants and needs when it comes to building your dream home?

It is best to write down a list of your wants and needs. By doing so, you can budget for your needs accordingly. If there’s money left over, you can pick and choose which of your wants you can afford.

Our Process

While building or renovating a home may appear complicated, it is our job to ensure it is as seamless as possible.

The loan process begins with an initial consultation with your Loan Officer. Together, you will outline goals and assess your financial situation. This will provide a better understanding of the mortgage amount you may qualify for. Here’s what you can expect from start to finish.

Prev Step
Next Step
step-1 step-1
1. Pre-Qualification
step-2 step-2
2. Making An Offer
step-3 step-3
3. Mortgage Process
step-4 step-4
4. Closing Process
step-5 step-5
5. Post-Closing

The first step toward a home purchase is getting pre-qualified for a loan. Your Loan Officer will review your financial information and determine how much you are qualified to borrow. As a pre-qualified buyer, your offer on a home is more likely to be accepted.

Loan Preparation Checklist

  • Copy of photo ID
  • Social Security number
  • Copies of checking and savings account statements for the past 3 months
  • Most recent pay stubs detailing your last 30 days of employment
  • Federal tax returns with W-2s, K-1’s, 1099 for the past 2 years
  • Evidence of any other assets such as stocks and bonds
  • Contact name and address of someone who can verify your employment

Since everyone’s situation is unique, additional documentation might be required. Your Loan Officer will let you know exactly what is needed.

First, identify a property that needs work that you want to renovate. From there, you will provide the following to your loan officer to prepare preliminary figures and make sure you qualify for this specific property and renovation amount. You will then receive a pre-approval letter and make the offer.

Step 1: The first step in the renovation process will be scheduling an appointment with a licensed consultant off of HUD’s consultant roster; they will help you determine the mandatory items that have to be done to get the home up to the minimum property standards for the appraisal and help you devise the scope of work for your wish-list items (the consultant is only required for the standard versions of the renovation loan programs).

Step 2: Get contractors out to the property to see the property and obtain bids from them on the list of mandatory and desired renovations.

Step 3: Select a contractor/bid and provide them to your loan officer and to your consultant.

Step 4: Your processor will reach out to the contractor to obtain the necessary documentation to ensure they meet the qualifications to do the work.

Step 5: Your consultant will revise his initial report to reflect the contractor’s figures and remove any desired items you have chosen to eliminate and/or add any additional desired and eligible repair items that were not on the initial list.

Step 6: Once you’ve decided the final scope of work that you want to include in the loan, the appraisal can be ordered, and that is done on an after-improved basis, taking into account the work that will be done to the home as part of the loan.

Step 7: Once you have provided all the necessary documentation and are pre-qualified for the loan, which is a percentage of the lesser of the acquisition cost (purchase price + renovations) or the after-improved appraised value, your loan can go to closing.

In the days leading up to settlement, you will be sent final documentation about your loan, including the Closing Disclosure. You must review, sign and return the paperwork a minimum of three days prior to your scheduled closing date.

Your Loan Officer, or a designated employee, will tell you the amount of money you need to close on your home.

What happens on closing day:

  • Meet with your settlement agent as well as your Loan Officer, or designated employee.
  • Provide funds to the title company to cover your down payment, closing costs, taxes, insurance and other costs.
  • You and the seller will execute all closing documents so the settlement agent can properly record the purchase of your home.

During Post Closing, your contractor can begin the work. You will start making payments which works the same as a standard loan unless you’ve financed payments into the loan for when the home will be uninhabitable during the renovation (please speak to your loan officer to determine whether this is possible for your loan).

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We’re here to help

From Maine to Tennessee, Michigan to Florida, First Home Mortgage has licensed professionals to help you accomplish your housing dreams. Contact one of our offices today to find a loan officer that will help you negotiate the home financing process successfully.

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