Most mortgage loans provide only for permanent financing, meaning the lender will not usually close a loan and release the funds unless the current condition and value of the property provide adequate loan security.  This typically means that the improvements must be completed before a long-term mortgage is made. 

Renovation Lending's approach is different.  We understand that there are many foreclosures and other bank-owned properties on the market that represent great buying opportunities for future home owners.  Many of these opportunities have been sitting on the market for extended periods of time in disrepair due to neglect primarily because of the lack of traditional financing.  Renovation Lending's solution to this problem is to provide ONE LOAN that is based on the AFTER REPAIR value.

Financing based on the completed value of the home to be purchased allows the home buyer to shop for homes with an entirely new perspective.  Each home on the market can now be considered on its potential - not just its current condition.  For example, if a house is found that is located in the ideal neighborhood with the preferred location, schools, etc., but is just too small for a family, Renovation Lending can provide a loan that can be used to purchase the property as well as construct an additional bedroom and bathroom to customize the home for the family's specific needs and preferences.