What are Renovation Loans Used for in Connecticut?
Renovation loans provide financing for both the purchase and improvement of a property, making them a go-to option for buyers who want to update a fixer-upper or homeowners looking to increase their property’s value. These loans cover everything from minor cosmetic updates to major structural repairs, including:
- Modernizing kitchens and bathrooms
- Fixing roofing, plumbing, or electrical issues
- Adding square footage or finishing basements
- Enhancing curb appeal with new siding or landscaping
- Improving energy efficiency with new windows, insulation, or solar panels
In Connecticut, where historic homes and aging properties are common, renovation loans give buyers the flexibility to take on properties that might otherwise be out of reach. Instead of struggling to secure separate financing for repairs, borrowers can roll the costs into a single loan, making the process more manageable.
5 Reasons Why Renovation Loans are Key in Connecticut’s Housing Market
1. Unlocking Hidden Value in Older Homes
2. Flexible Financing for Investment Properties
Real estate investors often look for properties that need work but offer strong returns. Renovation loans provide financing for both the purchase price and renovation costs, allowing investors to maximize their budget without securing multiple loans. With interest rates varying widely across different loan types, private money lenders offer a faster, more accessible solution compared to traditional financing.
3. Meeting Local Market Demand
4. Navigating Local Regulations and Zoning Laws
5. A Smart Option for Homebuyers Creating Their Dream Home
Requirements for a Renovation Loan at West Forest Capital
Before securing a renovation loan for your home improvement projects in Connecticut, you’ll need to meet the following requirements:
- First lien only: West Forest Capital must be the primary lender.
- Property must be in an LLC: Loans are not made to individuals.
- New appraisal required: A new appraisal is ordered by West Forest Capital, though an existing appraisal may be accepted on a case-by-case basis.
- Lender title insurance: Required to protect against title defects.
- Insurance policy: West Forest Capital must be listed as the loss payee and additional insured.
- Builder’s risk insurance: Required for extensive renovation projects.
Fast, Flexible Financing for Your Renovation at West Forest Capital
If you need financing for home improvements without delays, hard money loans offer a fast and flexible solution. At West Forest Capital, we provide real estate investors with competitive interest rates starting at 10% for interest-only loans, with amortization options available. Our loans typically have a 1.5%–2% origination fee and standard terms of one year, with options for a two-year term or six-month extensions. Loan amounts are capped at 75% of ARV, allowing borrowers to fund renovation projects while keeping risk manageable.
If you’re flipping a house, improving an investment property, or creating your dream home, our team understands the real estate market and provides the speed and reliability you need. Contact us today to discuss your loan options and take the next step in Connecticut’s housing market.
