Frequently Asked Questions

What improvements can we make to the property?

Repair/Replacement of roofs, gutters and downspouts
Repair/Replacement/upgrade of existing HVAC systems
Repair/Replacement/upgrade of plumbing and electrical systems
Repair/Replacement of flooring
Minor remodeling, such as kitchens and baths, which does not involve structural repairs
Painting, both exterior and interior
Weatherization, including storm windows and doors, insulation, weather stripping, etc.
Purchase and installation of appliances
Accessibility improvements for persons with disabilities
Lead-based paint stabilization or abatement of lead-based paint hazards
Repair/replace/add exterior decks, patios, porches
Basement finishing and remodeling, which does not involve structural repairs
Basement waterproofing
Window and door replacements and exterior wall re-siding
Septic system and/or well repair or replacement

What improvements are not allowed?

Any improvement that will take longer than 6 months to complete
Installation of a new swimming pool
Landscaping
Improvements that will require architectural plans, building permits, etc.
The removal of any load-bearing wall

What are the minimum and maximum amounts for repair costs under this program?

We have no minimum amount for repairs and the maximum amount is $35,000. We also can offer an additional $8,000 for improvements to be used to make older homes more energy efficient. By combining both programs, you can do up to $43,000 in improvements to your new home.

Can this loan program be used for the purchase and renovation of a condominium unit?

Yes. The program does allows only for interior improvements only to the condo unit. There are limitations to the program for condominium buyers. Please call us at 1-866-898-1465 so that we can provide you specific details on this program for condos.

Can we convert a one family dwelling to a two-, three- or four-family dwelling?

Yes. You can also convert the dwelling from multiple-units to a one-, two-, three- or four-units. The maximum number of units allowed is four-units when complete.

What happens if we do not complete the construction within the 6 month period?

Because you are doing minor repairs, your goals is to get the improvements done within 6 months after you close on your new home. After that time you are technically in default of the terms of your loan and the lender can call your loan due and payable. You need to stress the importance to your contractor that the work must be completed as quickly as possible.

Do we have to make our house payments during the construction period?

Yes, you must make your payments during the construction process.

Can we live in the home during the construction period?

Yes.

What is the process? How do we get started?

Please review Our Program page or contact us at 1-866-898-1465 or by email and let’s talk about your situation. We can answer all of your questions and explain the process.

What will the real estate agent need so that we can start looking at houses?

Once you have been pre-approved, we will provide you and the agent a Conditional Loan Approval. This will show the agent and the seller how much of a loan you are qualified for and it will also show a potential seller that you are ready to buy. It’s a powerful tool.

How do we know how much house can we qualify for?

It is always best to speak to one of our renovation loan specialists us before you go looking at homes. You need to be pre-qualified and fully understand the process. Most real estate agents have never been involved in a transaction like this and it is different than a typical purchase. Many people qualify for more home than they actually want. The rule of thumb is that your total monthly house payment should not be more than 32% of your total monthly household gross income.

How much money will we need for a down payment?

Our programs requires a minimum down payment of 3% of the total of the home purchase price and the cost of the improvements. You will also be required to pay any and all closing costs. This can equal 2-4% of the purchase price. Keep in mind that the seller can pay all of your closing costs. Call us and we can discuss this strategy with you. We do not offer a “zero down” loan program.

How long does the entire loan process take?

In most instances, we can close your transaction in approximately 30 days. Keep in mind that it will depend upon you getting to us all of the necessary documentation as quickly as possible when it is requested.

What are the income requirements for the program?

We will need to qualify you based upon your actual pay either from your pay stubs and W-2s or, if you are self-employed, your two most recent personal and business tax returns. We do not have any income limitations.

What type of assets do we need to show?

Please provide us with your current bank statements, 401K statements and any brokerage statements.

We don’t have all of the down payment, can we get a gift or a personal loan for all or the difference?

Yes, you can. You can receive a gift for the full amount of the down payment and closing costs from any close relative. Rules are changing regarding personal loans from a family member, so contact us for current information on this.

Can we do any of the work our self?

Unfortunately no. Any of the work that is going to be financed with our renovation loan must be completed by licensed and insured contractors. You are free to do any additional work on the home, that is not part of the contractor’s work, while the contractors are doing their work.

What type of contractor should we hire?

We require that you hire a licensed and insured contractor to complete the work. You may hire as many contractors that you need to complete the work. Keep in mind that each contractors will need to be properly licensed and have sufficient liability insurance. To keep the project manageable we recommend that you hire no more than three contractors.

Can we hire a family member who is a licensed general contractor to do the work?

At this time we cannot allow a family member who is a contractor to be part of the process. You and the contractor will have to sign a document stating that you are not related. This rule was put in place because too many loans were not being completed on time or costs were inflated by the family member contractor. Because of this we have had to end this option.

What loan types do you offer?

We offer both the 15-year and the 30-year fixed rate mortgage and we offer a 1-year and 3-year adjustable rate mortgage.

Who is Eagle Nationwide Mortgage Co.?

We are a division of Eagle National Bank, NA. We are one of the largest mortgage companies in the U.S. Currently, we have more than 150 branch offices around the country. Our office located in Phoenix, Arizona specializes in these types of loans.

Where do you do business?

We are licensed to do business in all 50 states. Currently we offer this loan product in all states except Alaska and Hawaii.

What happens when we the construction is completed?

You will contact us and if necessary, we send out an inspector to verify the project is completed and then the balance of the money will be dispersed to your contractor(s).