How does the draw procedure work?
You may have as many as five (5) draws as described in the “Rehab Loan Draw Schedule”. Each draw request will require an inspection to ensure that the work is completed in a thorough and professional manner. After completing a certain percentage of the required work, you will fill out a “Draw Request Form” and forward this to My Rehab Lender, Inc. We will schedule an inspector to visit your property and authorize release of your funds. The inspector is one approved by My Rehab Lender, Inc. There will be a $100 inspection fee charged for each draw, which is deducted from the total draw amount. If you request a draw and the work requested for reimbursement is not complete, you will be charged for the initial inspection and for the re-inspection, if you request one. Upon completion of the complete project you (and the contractor if there is one) will sign a completion certificate verifying all work is complete and code violations if any have been satisfied. Your payments must be current i
When remodeling an existing house, the loan options are even greater. You can do a construction only loan or a construction/perm loan as described above. Since you have an existing house, you can also use a second mortgage or equity line of credit to finance your remodeling. Many lenders will allow a second mortgage up to 100% of your homes value. The mortgages can extend over twenty years, thus keeping your payments to a minimum. Second mortgages and equity lines of credit are different. A second mortgage allows you to borrow a fixed amount of money for a fixed period of time and usually at a fixed rate. Home equity loans are like credit cards. You can borrow and pay off and borrow again up to your credit limit. The interest rates on home equity loans are usually quite high compared to second mortgages. Thus, for purposes of home improvement, the second mortgage is preferred. Now that we understand how we can finance our project, lets look at the mechanics of the loan. With a construc
Each draw request will require an inspection, to ensure that the work is completed in a thorough and professional manner. After completing a certain percentage of the required work, you will fill out a “Draw Request Form” and forward this to RDC. We will schedule an inspection of the property. Provided that the inspection supports the release of funds, we will wire transfer the funds or issue a check as appropriate.
Each draw request will require an inspection to ensure that the work is completed in a thorough and professional manner. After completing a certain percentage of the required work, you will fill out a “Draw Request Form” and forward this to Pacific Union Funding. We will schedule an inspection of your property and authorize release of your funds.
