Start with a Fixer Upper – End with Your Dream Home

Have you been hoping to work on a fixer upper to create your custom dream home?

Did you know Merchants Bank has a loan built specifically to support your fixer upper project? It’s called a Renovation Loan (sometimes known as a Construction Loan).

Here’s how it works:

1. You find a home to renovate and apply with me for a loan preapproval. Upon approval, you are able to move forward with a purchase agreement and the home buying process.
2. You provide a construction statement to me, which includes cost estimates to complete the proposed renovations. Then, an appraiser reviews the home and proposed plans to value the entire project.
3. The portion of the loan used to purchase the home is disbursed at closing and the remaining portion is kept open as a line of credit for the renovation project.
   • As needed, you can take draws on the line of credit to pay for renovation bills.
   • Interest is paid only on the amount of money drawn on the line. The renovation/construction loan is a 12-month program with low interest-only payments.
4. When the project is complete, an appraiser reviews the work compared to the original renovation plans and confirms the house value.
5. The loan may be refinanced to a fixed rate loan, or other permanent mortgage loan option, once the renovation work is complete.

If you are considering a renovation project, our team can help. I am always here to answer your questions. We really do make this part of the renovation process easy so you can concentrate on the bigger picture.

When you’re ready to start fixing up your dream home, you can contact me by phone at (715) 296-1160 or email me at TEScalzo@merchantsbank.com. Since I work out of my home office in Spooner, I can meet you when and where it is most convenient for you.

Merchants Bank is a Member FDIC and Equal Housing Lender. Loans are subject to approval.