A custom construction loan is typically used to build a home from the ground up while a remodel loan can be anything from adding another bathroom to a tearing the house down to the foundation and then rebuilding. Because the home will be appraised "as completed" and not "as is" the loan amount will be based on the final completed value of the home. For this reason people with little cash of their own, or those who simply wish to retain their cash, apply for a new loan to cover all the remodel costs. When the home is complete the remodel loan simply becomes the permanent mortgage. Whether purchasing or refinancing the remodel loan can provide the necessary funds to restore your glorious old house to it's original splendor.

For More Information on Remodeling or Custom Construction loans click on the Custom Built tab and the Build/Remodel Loans tab.