BACF Inc. Home Construction, Home Improvement, and Rehab Loans

We still have some programs available for home construction loans, home improvement and rehab loans. There are several ways to finance your project. Home equity lines, and home equity loans are common for smaller projects. For larger projects, we usually suggest a cash-out refinance or a home construction loan.

Home construction loans are usually classified as OTC programs, also known as one-time close programs, where one escrow process takes you from the aquisition of the land all the way through final permanent financing which pays off the construction loan. If you own the land already, the OTC loan can fund the demolition of the existing structure and the various phases of the new construction project as well. 

OTC loans can be used for rehab projects as well. A rehab project is usually defined as a partial rebuild of an existing structure. Rehabilitation loans (rehab loans) are almost identical to construction loans, differing only in that construction loans usually involve new construction on an undeveloped parcel of land, whereas a rehab loan takes an existing structure and provides the financing needed to rebuild, modify or expand (rehabilitate) it to improve the property's liveability, value, or functionality.

We work primarily with 1-2 different construction financing lenders, and are uniquely equipped to help you compare and find the right construction loan to meet your requirements.

Here are some of the basic features available:

1) Limited cash contribution possible

2) Minimal builder / contractor approval

3) Flexible credit requirements

4) Limited reserves required

5) No payments during construction

6) 12 - 24 month construction phase

7) Interest only payments available

8) Large loan amounts available, up to 6M

9) 2-4 unit projects possible

10) Quick approvals available, even prior to permit

11) Rehab loans, owner occupied, no problem

14) Spec projects, multiple unit development projects, in-fill possible

Please contact us for more information, or a pre-approval analysis for your construction financing or home improvement loan project.