Home Equity Construction Loan

Do you have a big renovation and not enough equity for a home equity loan? We've got another option. Rachel explains a new Levo product called Home Equity Construction Loans.

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(0:00) Don't have enough equity in your home currently? Levo has options. (0:04) Let me tell you about our Home Equity Construction Loan. (0:12) Essentially, it's a hybrid between a Home Equity Loan and a Construction Loan. 

(0:15) A Home Equity Construction Loan is a type of loan in which the borrower uses (0:19) the future value of his or her property as collateral to complete a home renovation or (0:24) remodel. Once the project is complete, the loan is then refinanced into a traditional (0:29) Home Equity Loan or HELOC. A Home Equity Construction Loan is different from a (0:33) Home Equity Loan in that it's used specifically for renovations or projects that increase your (0:38) home's value.

Examples would be kitchen remodels, finishing your basement, or adding square footage. (0:44) A traditional Construction Loan is used when you're building a home from scratch, (0:48) but a Home Equity Construction Loan is used on a home that you already own. (0:52) With this loan, you can borrow up to 90% of your home's value based on the value after (0:57) your project is completed.

The Home Equity Construction Loan has a maximum loan amount (1:01) of $100,000. This loan has a nine-month term with no payments required during that time. (1:06) We have no prepayment penalties for any of our Home Equity products, so when your project is (1:10) complete, you can refinance or pay off your loan at any time.

One of the major benefits to this (1:15) type of loan is that when your term is up, Levo will waive the closing costs when you refinance (1:19) into a Home Equity Loan or HELOC with us. Make sure to have your project plans and specifications (1:24) ready to go when applying. The appraiser will use these to help determine the value of your home (1:28) once your project is complete.

Many lenders cap their Home Equity options at 80 or 90 percent of (1:34) your home's current value. Levo is giving members who don't have a ton of equity currently the (1:39) ability to do those larger renovations, knowing that the equity will be put back in once the (1:44) project is complete. The first step to applying is to get in touch with a Levo Home Equity Specialist.

(1:49) You can also go online to levo.org and fill out an application anytime. (1:54) Give me a call today. I would love to show you the Levo difference.