Financing Your Project

When you’re thinking about remodeling your home, paying for it is a big part of the puzzle. While traditional or home equity loans may be options, Baybrook Remodelers may have the best option. Baybrook Remodelers is an approved 203(k) remodeler who works with Wells Fargo to help you finance your project.

A 203(k) loan is a specialized renovation or construction loan that is backed by the Federal Housing Authority. It lets the homeowner borrow the cost of the project and combine it with the mortgage.

Clients looking to use a 203(k) loan through Baybrook Remodelers would first meet with us to discuss project needs. Once a final plan is agreed upon, we provide a quote. The 203(k) lender would then break down the quote to assure that it is fair and accurate. Once everything is approved, Baybrook Remodelers can begin your project. No down payment is required. As the job progresses and is inspected, partial payment is released with a 10 percent holdback to the homeowner. This process continues at certain intervals until the project is completed.

There is also a 15% contingency in place for the homeowner to access should extra costs occur. Once the project is complete, the bank values the project and works that amount into the equity of the home. This differs from a traditional loan which would not capture equity for the homeowner.

When the project is complete, the 203(k) loan absorbs the existing mortgage and rolls it and the remodeling loan into one payment. Homeowners financing with the 203(k) loan do not need to worry about paying a mortgage and loan payment once the project is done. They will have only one combined payment. That is why so many people favor this option.

Baybrook Remodelers completes numerous 203(k) projects every year. Let us help you get that remodeling project done in a way that won’t hurt your wallet. Call our West Haven or Fairfield offices today for more information.