What Are Renovation Loans?
How Renovation Loans From Private Lenders Differ From Traditional Bank Loans
Examples of How To Use Renovation Loans for Hurricane Upgrades
Below are some practical ways you can use your renovation loan to upgrade your home:
- Installing storm shutters to protect windows and doors from high winds and flying debris. You can potentially also install impact resistant windows.
- Reinforcing roofs with hurricane straps to withstand hurricane force winds.
- Strengthening foundations and lower-level walls to guard against storm surges and flooding.
- Replacing standard doors with hurricane-rated doors that resist wind pressures from both hurricanes and tropical storms.
- Upgrading landscaping and exterior features to reduce the risk of flying debris during severe storms and protect outdoor furniture.
These proactive renovations protect your home and investment long-term, making sure you’re ready when hurricane season arrives.
When a Hurricane Hits, Your Home Faces Multiple Risks:
- Roof Damage: Powerful winds can rip off shingles, damage gutters, or even lift entire roofs, allowing water to flood your home.
- Window and Door Destruction: Without proper protection, windows and doors can shatter or collapse, leading to severe interior damage.
- Flooding and Water Intrusion: Heavy rains and storm surges can flood lower levels, destroy flooring and walls, and cause mold and structural problems.
- Foundation and Structural Damage: Storm surge and flooding weaken foundations, putting your home’s structural integrity at risk.
- Damage to Exterior Features: Decks, porches, fences, and landscaping often face costly damage during hurricanes.
A renovation loan from West Forest Capital lets you proactively address these areas of vulnerability. You can replace your roof, install storm-resistant windows and doors, add flood barriers, reinforce your home’s foundation, or secure exterior features. By taking these steps now, you can reduce hurricane damage and protect your Florida home and investment long-term.
Can I Use a Renovation Loan if My Home Already Has Hurricane Damage?
Can Renovation Loans Cover the Full Coast of Hurricane Upgrades?
Requirements for a Renovation Loan
At West Forest Capital, our approval process for a renovation loan is streamlined to help borrowers secure funding quickly. Below are the specific conditions which must be met before a loan is issued:
- First Lien Only: We only lend on properties where we hold the first lien position, meaning there cannot be any existing mortgage or loan that takes priority.
- Property Must Be in an LLC: To qualify, the property must be owned under a limited liability company rather than a personal name. This structure provides added legal protection and financial separation for real estate investors.
- New Appraisal Ordered by West Forest Capital: A fresh appraisal ensures the property’s value aligns with the loan terms. In some cases, an existing appraisal may be accepted on a case-by-case basis.
- Lender Title Insurance: A lender’s title insurance policy is required to protect against any claims or disputes related to property ownership.
- Insurance Policy: Borrowers must secure an insurance policy naming West Forest Capital as the loss payee and an additional insured party.
- Builder’s Risk Insurance: For extensive rehab projects, builder’s risk insurance is required to cover potential losses due to construction-related risks.
Why West Forest Capital Is the Right Choice for Renovation Loans
When it comes to securing funding for hurricane-resilient renovations, our hard money loans provide the flexibility that traditional financing might not offer.
We offer:
- Loan rates starting at 10% for interest-only loans, with an amortization option available
- Origination fees of 1.5 – 2%, keeping costs manageable
- A standard one-year loan term, with the option for a two-year term and six-month extensions if needed
- Up to 85% of the purchase price covered in financing
- Typically, 100% of rehab costs funded to complete home improvement projects
- A total loan amount not exceeding 75% of the after-repair value (ARV), providing financial feasibility
Ready to explore financing options for your renovation project? Our team at West Forest Capital is here to help.
