Renovation Loans

If your dream home is almost in your grasp - with just a few updates - it's time for a renovation loan. With a renovation loan, you have the flexibility you need to finance projects when you want to update your current space or remodel a new home you’ve purchased. A renovation loan provides financing for major remodeling of existing homes and is different from a Home Equity Line of Credit.

Dreams are no longer just dreams:

• Make that home addition a reality.
• Install new flooring, paint, trim, doors or windows.
• Update your electrical, plumbing or heating and air conditioning systems.
• Kitchen and bathroom renovations are within reach.
• Finish your basement to add more living space for your family.

Talk with our lenders today about your options to see what makes sense for you. We'll be there to walk you through each step and help you fulfill your home dreams.

1. Merchants offers the approved borrower, short-term, low rate, interest-only financing during the renovation period. Approved borrowers start with just 5% down.
2. If you are purchasing a home, you will need to provide the purchase agreement along with the estimates for the work to be completed. If you are renovating a home that you already own, you will need to get estimates for the work to be completed.
3. Merchants Bank will order an appraisal based on “After Improved” value.
4. Your home will be inspected throughout the renovation process (a home inspection is required).
5. When the renovation is complete the appraiser performs a final inspection and that, along with updated income and asset documentation, is submitted to underwriting for approval on the renovation loan modification. If approved, you close on your permanent loan financing.